US stock markets reach 12-year lows

US stock markets dropped to twelve-year lows on Thursday, amidst falling confidence in the financial sector and worries over whether the US automobile manufacturer General Motors will be able to keep operating.

The Dow Jones Industrial Average dropped by 4.08%, or 280.52 points, at the closing bell, reaching a level of 6595.32, a new 12-year low. The Nasdaq Composite lost 54.15 points, or 4%, to 1299.59, while the Standard & Poor's 500 plunged by 30.27 points, or 4.25%, closing at 682.60.

Every stock in the Dow Jones, other than Wal-Mart, either lost ground or remained even, and all stocks in the S&P 500 index lost ground.

General Motors' shares lost 15.5% after the auto firm announced that its auditors had "substantial doubt" over whether it would be able to keep operating.

Shares of financial companies were lower by nine percent, with Bank of America losing 11.7% and Citigroup falling by 9.7%.

Thousands take part in protests across US against government's financial policy

Last Friday, thousands of people, in a total of more than thirty US cities, took part in a protest against the economic policy of the US government.

The event, which was inspired by the Boston Tea Party, took place due to comments made by CNBC presenter Rick Santelli.

"This is America! How many of you people want to pay for your neighbors' mortgages, that has an extra bathroom and can't pay their bills?" said Santelli, speaking on-air to the television audience. "We're thinking about having a Chicago tea party in July. All you capitalists that wanna show up at Lake Michigan, I'm gonna start organizing."

The protest took place in anger against the American Recovery and Reinvestment Act of 2009 (ARRA). Several protesters voiced their opposition to this act. "I'm sick and tired of it," said protester Barbara Keeton, speaking to WYFF4.com. "That's my money. That's my grandchildren's future. It's down the toilet."

Record number of failed banks reported in US for February

According to the Federal Deposit Insurance Corporation (FDIC), a record number of banks for a calendar month have failed in the United States in February. A total of 10 banks failed in February, more than any other month since October of 2000. A total of 16 banks have closed this year so far, with 24 closing in 2008. If the current trend continues, the total number of failed banks will more than double in March, as compared to the total number of failed banks in 2008.

The list grew after the FDIC took over the funds from the Security Savings Bank of Henderson, Nevada and the Heritage Community Bank in Glenwood, Illinois on February 27. The FDIC issued press releases for both institutions.

The four branches of the Heritage Community Bank reopened on February 28 "as branches of MB Financial Bank," stated the FDIC. The bank's assets were worth nearly US$233 million and had customer deposits worth nearly $220 million. MB is expected to purchase $230 million of the bank's assets and the FDIC will "retain the remaining assets for later disposition."