MARKET UPDATE: BANKINGFEARS PUSH STOCKS DOWN

REUTERS/FORBES: U.S. stocks fell sharply Tuesday as growing concerns about the U.S. banking system and over whether a recent rally in equity markets is warranted drove investors to the relative safety of bonds and the dollar . . . READ MORE

CNN/MONEY: Markets broadly sold off Tuesday afternoon, as investors took a big step back at the start of what is typically a rough month, betting that stocks have risen too far too fast without any underlying support . . READ MORE

THIRD DAY OF WALL ST. LOSSES
BLOOMBERG: U.S. stocks fell for a third day, the longest losing streak for the Standard & Poor’s 500 Index since June, as concern banks will post more losses overshadowed manufacturing and housing data that topped estimates . . . READ MORE

BERNSTEIN DOWNGRADES A.I.G.
FORBES: AIG fell 17% after Sanford C. Bernstein dropped the stock to "underperform," on concerns that Washington will pull back on financial assistance as AIG recovers. The firm is still on the hook for $80 billion in federal loans . . . READ MORE

HOUSING: FL. FORECLOSURES UP
SO. FLA. BIZ JOURNAL: The number of South Floridians facing foreclosure increased by 39 percent, year-over-year, in August, with more than 7,800 foreclosure filings in Miami-Dade, Broward and Palm Beach counties . . . "South Florida is on pace to register more than 100,000 foreclosure filings in 2009, up from 75,000 in 2008 and 33,000 in 2007," said Peter Zalewski, a principal with the Bal Harbour-based real estate consultancy Condo Vultures . . . READ MORE

BONDS: PRICE UP, YIELDS DOWN
EXAMINER: There is no sector that isn’t feeling the pinch as we enter what is typically the September market doldrums. Investors are again fleeing to the relative safety of treasury bonds, driving the price up, and yields down. Mortgage rates are the beneficiary of this Wall Street slump . . . READ MORE