Worries over the dismantling of Citigroup and the necessity of fresh capital injection into Bank of America by the U.S. authorities is creating worries of a system-wide banking crisis of confidence. Bank of American absorbed both Countrywide Mortage and Merrill Lynch in short order last year, and despite having 10% of the nation's savings deposits, has seen its share price steadily eroded as confidence in the banking system has failed to materialize. JP Morgan Chase has also been under pressure in recent days and weeks, after absorbing Washington Mutual late last year. The Dow has been lower throughout the evening and overnight session thus far.
Here is a related Bloomberg story.
