What Happens When There's Talk of Nationalization

Bloomberg.com: Worldwide:

"Citigroup Inc. tumbled as much as 36 percent and the Dow Jones Industrial Average dropped below its lowest close since 1997 before paring losses as White House spokesman Robert Gibbs said the administration wants to maintain a “privately held banking system.” Bank of America Corp. also plunged as much as 36 percent before recouping most of the drop after Chief Executive Officer Kenneth Lewis said the bank can survive “on our own.”

“There’s so much uncertainty and a decent chance of the worst case, nationalization, that it’s complete speculation to mess with Citigroup and Bank of America,” said Edwin Walczak, head of U.S. equities at the American unit of Vontobel Holding AG of Switzerland. “The price is telling you that.” Vontobel’s U.S. unit manages $6 billion."