Market Wrap: Kim Jong-il Passes Away; AT&T Quits T-Mobile Bid; BAC is Less TBTF; Fed Praises Basel III

Market wrap-up for December 19th

End of the Day: Dow Jones down 100.1 to 11,766.26; Nasdaq down 32.2 to 2,523.14; S&P 500 down 14.3 to 1,205.35

The following is a brief summary of events moving markets today:

• North Korean dictator Kim Jong-il passed away on Sunday. Reports have the 69- or 70-year-old Jong-il suffering a heart attack during a train ride.
  
  With no immediate leader selected to assume the role, South Korea put its military on high-alert in order to prepare for any periods of volatility in the region.
  
  
• AT&T ends T-Mobile bid: Late Monday, AT&T Inc. (NYSE: T) said it agreed with Deutsche Telekom AG to end its bid to acquire T-Mobile USA, which began in March of this year. AT&T also said it would recognize a $4 billion pretax accounting charge in the fourth quarter, and will enter a mutually beneficial roaming agreement with Deutsche Telekom.
  
  
• Fed loves a little Basel on its banks: Financials took a bit of a hit Monday following reports the Federal Reserve is expected to embrace new Basel III regulation which would have U.S. institution required to hold more capital reserves. Banks have been arguing the Basel rules will dampen lending and halt economic growth further.
  
  Two things of note: it isn't clear Basel III reforms will be in-line with what Dodd-Frank regulation is set out to do (end TBTF), and banks will surely raise fees in other areas to make up for lagging profits on lending. Click here for more.
  
  
• Wow, Europe's only number four today: Reports Monday suggest eurozone finance ministers agreeing to contribute €150 million in additional bilateral loans to the IMF. Despite the agreement, contributions expected to be made by the other members of the European Union were unclear, with the U.K. holding ground on its stance that further contributions should be part of a global agreement.
  
  
• BofA becomes less too big to fail by the day: Bank of America (NYSE: BAC) shares fell below $5 for the first time since March 2009, indicating waning investor confidence in the Wall Street staple. CEO Brian Moynihan commented today 2012 will be another year of economic grinding. He said BofA is expecting slow growth and little improvement in the labor market next year.
  
  Comments were issued at a forum in North Carolina on Monday.

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