12:30 PM New York – Banks in New York and Europe declined after investors worried that fast developing Dubai credit crunch may contribute to losses. Royal Bank of Scotland led a consortium of seventy bankers to fund most of the debt that fueled construction boom in Dubai.

Of the stocks in S&P 500 index, 7 increased, 491 declined and 2 were unchanged.

The New York Times Company led the decliners in the S&P 500 index with a loss of 6.1% followed by losses in The NASDAQ OMX Group, Inc of 5.5%, in Pioneer Natural Resources Company of 5.1%, in CBS Corporation of 4.8% and in CONSOL Energy Inc of 4.7%.

Other Movers

Bank of America Corporation (BAC) fell 1.8% or 29 cents to $15.66.

Citigroup Inc (C) slipped 1.4% or 6 cents to $4.11, JPMorgan Chase & Co (JPM) fell 1.1% or 50 cents to $41.66 and Bank of America declined 2.2% or 36 cents to $15.59.

Bloomberg and Reuters reported that Royal Bank of Scotland led a consortium of banks that funded the construction boom the Emirates.

Frontline Ltd (FRO) decreased 3.3% or 90 cents to $26.09 after the tanker company reported third quarter revenues fell 59.6% to $233.0 million from $577.3 million a year ago. Net loss in the quarter was $5.6 million or 7 cents per diluted share compared to net income of $107.8 million or $1.39 per share a year ago.

The Goldman Sachs Group, Inc (GS) fell 2.1% or $3.67 to $165.54.

ING Groep N.V (ING) plunged 18.0% or $2.22 to $10.06 after the Dutch financial-services company said sets terms for its €7.5 billion rights issue ahead of schedules that investors had expected.

Las Vegas Sands Corp (LVS) fell 4.6% or 75 cents to $15.74.

MGM Mirage (MGM) the gambling and resort operations dropped 5% or 55 cents to $10.46 and its partner Dubai World based in Dubai, UAE is negotiating debt rollover that may involve as much as $18 billion.

MidSouth Bancorp, Inc (MSL) closed unchanged at $13.42.

The New York Times Company (NYT) the diversified media company declined 5.3% or 48 cents to $8.54.

Ship Finance International Limited (SFL) declined 4.1% or 56 cents to $12.80 after the ship owning company reported third quarter sales fell 30% to $80.2 million from $114.3 million a year ago. Net income in the quarter fell 28.3% to $34 million or 44 cents per diluted share compared to net income of $47.4 million or 65 cents per share a year ago.

Silvercorp Metals Inc (SVM) declined 5.1% or 40 cents to $7.40.

Wells Fargo & Company (WFC) the financial company dropped 1.6% or 48 cents to $27.35.