Bank Nationalization Fears Once Again Sink Stocks

As the federal government increased its stake in Citigroup, fears rose again that banks will be nationalized to send the markets tumbling to a lower close with the Dow plunging 119 points to 7063. Nasdaq dropped 14 points to 1378.

On the upside

Aircastle (NYSE: AYR) reported higher fourth quarter and full year revenue.

Although Dell (Nasdaq: DELL) reported lower fourth quarter earnings, the company expects to eliminate another $1 billion in expenses.

Blackstone Group (NYSE: BX) significantly widened fourth quarter losses but the stock price rose after the company assured investors that dividends will be restored in fiscal 2009.

On the downside

Verenium (Nasdaq: VRNM) warned that a conversion price reset for certain senior convertible notes may lower its cash resources.

Bank of America (NYSE: BAC) received a subpoena from the New York attorney general's office to provide names of Merrill Lynch executives who received a total of $3.6 billion in bonuses.

Standard & Poor's lowered its ratings for Metlife (NYSE: MET) while raising its loss assumptions for the life insurer.

In the broad market, declining issues outpaced advancers by a margin of more than 2 to 1 on the NYSE and by nearly 7 to 5 on Nasdaq. The Russell 2000 which tracks small cap stocks lost 4 points to 389.