Investors flee financial stocks; AIG slips 20%

09-01-2009 • Market Watch

Keep in mind WE own AIG because of the bailouts so now this signals what that investors are even worried hmmm. The story BOSTON (MarketWatch) -- The U.S. financial sector was sharply lower on the first day of September as investors nervous about the summer run-up and the new month's bearish reputation fueled the selling momentum. Shares of bailed-out insurance giant American International Group Inc. (AIG 37.52, -7.81, -17.23%) took a major hit for the second straight session after their recent surge. AIG more than tripled in August as traders bid up other so-called high-beta financial stocks such as Citigroup Inc. (C 4.66, -0.34, -6.84%) , Bank of America Corp. (BAC 16.87, -0.72, -4.09%) , Fannie Mae (FNM 1.69, -0.24, -12.47%) and Freddie Mac (FRE 2.01, -0.28, -12.23%) . Markets are concerned about a potential pullback in highflying bank stocks in September after the summer rally. An exchange-traded fund tracking the financial stocks in the S&P 500 Index (SPX 1,002