Stocks End Down, Eyes on Fed

U.S. stocks ended down on Monday, with each of the major indexes falling for a fourth straight session, as Treasury yields continued their grind higher on speculation of a Federal Reserve retreat from easy-money policies. The Dow Jones Industrial Average dropped 70.73 points, or 0.47%, to 15,010.74 and the S&P 500 index fell 9.77 points, or 0.59%, to 1,646.06. The Nasdaq Composite index declined 13.69 points, or 0.38%, to 3,589.09.

The Federal Reserve says the nation’s largest banks need to do a better job of determining how much capital they need to cushion against a future crisis.

Fannie Mae (FNMA) and Freddie Mac (FMCC) are possibly masking billions of dollars in losses because of the level of delinquent home loans they carry, a federal watchdog said on Monday, adding that the companies should immediately be required to
recognize the costs of some bad mortgages.

Billionaire fund manager Philip Falcone agreed to a five-year ban from the financial industry and will admit wrongdoing to settle charges by the U.S. Securities and Exchange Commission that he improperly used money from his hedge fund and unfairly favored some of his investors, the SEC announced on Monday.