Despite that the stock markets are closed today, the stock market futures tumbled from positive territory into the red when the Royal Bank of Scotland announced further write-offs of nearly $42 billion today, raising fresh doubts about the solvency of US and UK banking systems. The Dow last night had been higher by 75 points, but when the RBS news was announced at 8 a.m. EST, the futures tumbled to a low of -125 on the Dow, finally settling the trading day in the red at about -90. It was also over the Martin Luther King Holiday one year ago that a rogue trader at Societe Generale also roiled the stock market futures when his unauthorized trades were suddenly liquidated. Dow futures dropped 570 points that day. The stock market recovered, moved higher again, and closed up about 200 points the following day.
