Stocks in the United States fell again on Monday amid concerns about massive credit losses at Citigroup.
Shares in Citigroup fell by 17% after The Wall Street Journal reported it could report more than $US10 billion in fourth-quarter operating losses.
The bank is also in a deal to sell a controlling stake ina retail brokerage business, Smith Barney, to Morgan Stanley. However, investors fear Citigroup is looking to sell one of its best assets because it needs cash.
Financial stocks were among the worst performers on the Dow, as Bank of America tumbled 12% and JPMorgan fell 4.1%. Citigroup was down to $US5.60 - near the level before the bank was bailed out by the US government last year.
The Dow Jones industrial average fell 125.13 points, or 1.46%, to 8,474.05.
Standard & Poor's 500 Index dropped 20.09 points, or 2.26%, to 870.26. The Nasdaq Composite Index lost 32.80 points, or 2.09%, to 1,538.79.
In response to the faltering economy, President-elect Barack Obama asked President George Bush to seek the remaining $US350 billion of a $US700 billion financial industry bailout from Congress. The White House said he agreed to do so.
Volume was light on the New York Stock Exchange, where about 1.3 billion shares changed hands. About 1.78 billion shares were traded on the Nasdaq.
