NEW YORK (AP) Stocks have extended their slide but regained
some lost ground after the White House doused fears that the
government would nationalize crippled banks.
White House press secretary Robert Gibbs said Friday the Obama
administration continues to "strongly believe that a privately
held banking system is the correct way to go.''
Shares of financial bellwethers Citigroup Inc. and Bank of
America Corp. have plunged on worries the government will have take
control and wipe out shareholders in the process. Citigroup fell 22
percent, while Bank of America fell 3.6 percent. But the stocks
have been down as much as 36 percent during the session.
The Dow Jones industrial average is down 100 at 7,366. The
Standard & Poor's 500 index is down 9 at 770, while the Nasdaq
composite index is down 2 at the 1,441 level.
Declining stocks outnumbered advancers by about 3 to 1 on the
New York Stock Exchange. Volume came to a heavy 2.11 billion