NYSE update: Wachovia and Citigroup merger, JPMorgan Fall

America stocks took a major slump on Monday as Wachovia takeover from Citigroup, and three European banks required government rescues, as President Bush $700 billion rescue plan to improve the world financial markets comes under closer scrutiny and concern.

Wachovia Corp. shares dropped over 90 percent in early trading after Citigroup Inc done a deal to buy its banking operation and take as much as $42 billion in losses.

News of the Wachovia buyout caused havoc on the New York Stock Exchange on Monday; Ohio’s largest bank National City Corp took a 22 percent downslide whilst JPMorgan Chase & Co fell 5 percent. Freeport-McMoRan Copper & Gold Inc slid 12 percent and the Dow Jones Industrial Average went down 2.2 percent to 10,901.24. More evidence of how the credit crisis is hitting the world economy and stock markets.

JPMorgan, which became the largest U.S. bank by deposits after purchasing branches from Washington Mutual Inc. last week, slid $2.42 to $45.82. National City lost 81 cents to $2.90.

Read the full article: Bloomberg