Bank Failure Slows Markets Worldwide

Stocks fell sharply late Monday, weakening on investor fear about the implications of the collapse of Britain’s oldest investment bank, Barings PLC.

Turmoil in overseas markets also contributed to the declines, with stocks in Asia tumbling in response to the Barings crisis and Mexican issues falling on concerns about Mexico’s economic crisis.

The Dow Jones industrial average lost 23.17 points to 3,988.57.

Declining issues outnumbered advances by about 5 to 2 on the New York Stock Exchange.

Volume on the floor of the Big Board came to 285.79 million shares as of 4 p.m., down from 302.86 million in the previous session.

The late decline came amid rumors Barings’ losses were significantly larger than reported and may have ramifications for some U.S. financial institutions, said Michael Metz, investment strategist at Oppenheimer & Co.

U.S. markets held up well early in the day, despite a 3.8 percent dip in Tokyo stocks.

Stocks fell elsewhere but not sharply. In Frankfurt, shares fell 0.9 percent, in London, home to Barings and where most of the Barings crisis was felt, they lost only 0.4 percent.

Some of the stocks that moved substantially or traded heavily:

NYSE

Telefonos de Mexico, down 1 1/2 to 26 7/8.

Mexican stocks fell with the market in that country amid renewed pessimism about Mexico’s economy. Grupo Tribasa lost 3/4 to 5 1/2, while Grupo Televisa fell 1 3/8 to 15 1/4.

Best Buy, down 2 1/8 to 21 3/8.

Merrill Lynch lowered a rating on the company’s stock.

Bankers Trust, down 3/4 to 62 3/4.

Banking stocks fell amid concern about the impact of British investment bank Barings PLC’s collapse. Most analysts said, however, that U.S. financial institutions won’t likely suffer any negative affects. Chase Manhattan lost 1/2 to 35 3/8 and Merrill Lynch fell 5/8 to 40 3/8.

NASDAQ

ADC Telecom, up 4 1/2 to 55.

The company said it has won a major contract, estimated at $185 million, to supply advanced Broadband technology to Optus Vision, an Australian group developing the world’s first combined telephone and home entertainment service.

Sutton Resources, up 3 to 11 3/4.

The company indicated there have been significant developments in the company’s exploration projects.

AMEX

Ivax Corp., up 7/8 to 21 1/2.

The company said fourth quarter earnings were 11 cents a share vs 20 cents in the same three months last year. This year’s profits, however, include merger expenses and onetime charges.