Markets Close Lower as Fears Over Banks Persist

By JACK HEALY
NYT

Wall Street’s fears about a government takeover of major banks eased somewhat on Friday afternoon after the White House reaffirmed its belief in a privately owned banking system.

The Dow climbed back from a 200-point loss but still ended 100 points lower after the Obama administration tried to reassure nervous investors that it wanted to avoid nationalizing troubled banks.

“This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring that they are regulated sufficiently by this government,” a spokesman for President Obama, Robert Gibbs, said. “That’s been our belief for quite some time, and we continue to have that.”

The Dow Jones industrial average closed down 100.28 points or 1.3 percent to 7,365.67, while the broader Standard & Poor’s 500-stock index fell 1.1 percent or 8.89 points lower to 770.05. The Nasdaq was 0.1 percent lower, ending at 1,441.23.

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