The Dow Jones Industrial Average lost 335 points on Thursday. It was the biggest point drop of the year for the Dow. The Nasdaq and S&P both sunk 2%.
Investors are concerned about economic growth in Europe and what kind of impact a slowdown in those countries could have on the U.S. economy.
Paul Hickey of Bespoke Investment Group is OutFront.
Citigroup agreed to pay $7 billion to settle charges that it packaged bad mortgages during the run-up to the financial crisis.
It includes $4 billion in penalties, $2.5 billion in mortgage modifications and other relief to homeowners, and $500 million going to five states and the Federal Deposit Insurance Corp.
The settlement means Citi will be able to avoid a civil suit by the Justice Department and mirrors similar agreements with JPMorgan Chase (JPM) and other lenders in recent years.
While Citi took a $3.8 billion hit because of the deal, which essentially wiped out its earnings for the quarter, it can afford it. Last year, the bank earned $14 billion and had $35 billion of cash on its balance sheet as of June 30.
The conflict in Iraq is hurting every American already- oil prices rising about 4% this week to a 9-month high.
Iraq has some of the largest oil reserves in the world, and it has actually been pumping out quite a bit of it lately
According to the International Energy Agency, Iraq produced about 3.37 million barrels of oil per day last month. It's not far off from the country's record highs set back in 1979.
Joining us tonight with more on how the Iraqi crisis could hit your wallet is Dan Dicker, an oil trader and president of MercBloc.
President Obama is taking on Wall Street again.
After sending his 2015 fiscal year budget to Congress, President Obama said he planned to close tax loopholes benefiting the rich.
"Closing tax loopholes that, right now, only benefit the well-off and well-connected," Obama said.
Obama has often called on Congress to close tax loopholes including the carried interest loophole, which he promised to close during his first campaign.
The idea of closing this loophole has appeared in President Obama's budgets over and over, but it never makes it to the final draft.
Erin Burnett thinks the carried interest loophole is "one of the most ridiculous tax loopholes in America."
It has netted billions of dollars for a very select few Americans.
It's the loophole that gives loopholes a bad name, and makes arguments of special treatment hold up.
Burnett explains how it works:
OutFront: Democratic Congressman Brad Sherman - he sits on the House Financial Services Committee. He is also a Certified Public Accountant.
World financial markets fell sharply as the crisis in Ukraine escalated.
The Dow Jones Industrial Average dropped 153 points, oil prices spiked by nearly $2 a barrel and the ruble plunged.
The already weak Russian currency fell as much as 3% versus the U.S. dollar before posting a small recovery. Joining us tonight to talk about why the markets are tumbling is Peter Costa, President of Empire Executions.