After Senator Chris Dodd suggested that nationalization of U.S. banks was almost inevitable, the White House reassured the financial markets by suggesting that they were opposed to such an idea.A fellow trader pointed out to me, however, that the White House only suggested that only the banking "system" would remain in private hands. He said that the subsequent lower close occurred when market participants began to parse the White House' words and realized that individual banks may still be nationalized. Stocks closed lower as a result.
