US banking shares hit their lowest level since 1992 on Thursday as fears mounted that the government would be forced to nationalise a key institution.<\/p>\n
Further heavy selling of key names \u201d\u201c Bank of America and Citigroup were once again among the worst performing, down 14 per cent to $3.93 and 13.8 per cent to $2.51, respectively \u201d\u201c helped push the Dow Jones Industrial Average to its lowest level in six years.<\/p>\n
Shares in several regional banks also sustained heavy losses as the S&P financial index dropped 5.2 per cent to its lowest level since 1995.<\/p>\n
\u201cEvery time someone mentions the word [nationalisation] then investors shiver \u201d\u201c and with good reason,\u201d\u009d said Marc Pado, chief market strategist at Cantor Fitzgerald. \u201cThere\u2019s a lot of angst over what [US Treasury Secretary] Geithner\u2019s going to propose.\u201d\u009d<\/p>\n