Citigroup_ Bank of America Spiral Further Downward

Citigroup shares haven’t traded this low since 1991. Bank of America, meanwhile, hasn’t seen its shares this low since 1984. It would appear that investors are worried that Citi and Bank of America will ultimately be taken over by the U.S. government. Some worry that it could happen as early as this weekend, which is why Citigroup is down 20% and Bank of America is off by nearly 15% this morning. From Reuters:”Right now, people are looking at the worst-case scenario, which is either a complete nationalization or Bank of America and Citi having to raise so much common equity that they dilute shareholders. It seems to me either one is a possibility,” said Keith Davis, a research analyst at Farr, Miller & Washington.”There’s just so much uncertainty about what’s going to happen to these two companies … No one wants to get involved with these banks,” he added.Bank of America Chairman and Chief Executive Kenneth Lewis told executives at a senior leadership meeting on Thursday that Washington policymakers have assured him that the possibility of nationalizing the bank was not on the table, the Wall Street Journal said, quoting a person at the meeting.Remember the American Visa Signature card that my reader, azntg, conjured up (link here)? That fictitious credit card is starting to look more and more possible each day, no? Click for full-size picture.