Closings for key Asia-Pacific stock markets. Global stock markets reeled Monday, as panicked investors scurried for cover on fears that a much-vaunted US finance sector bailout will fail to end a crippling credit crisis. (AFP Graphic)
"People are panicked that their bank is going to go out of business. People have just lost a lot of trust in the financial system and in these large institutions," said Anil Kashyap, professor of economics and finance at the University of Chicago's Graduate School of Business. He suggested the crisis has morphed from a near shutdown in lending to a new, more dangerous phase in which financial and other companies face greater chances of insolvency.