SAN FRANCISCO (Dow Jones) -- Bank of America Corp. shares hit a record low and Citigroup Corp.'s stock slumped to an 18-year low Friday, as the two financial giants faced investors' concerns they may be nationalized.
Citigroup shares dropped 33% to $1.68, their lowest level since early 1991. Bank of America fell 29% to $2.81, and earlier changed hands at a lowest-ever $ 2.53, according to FactSet Research data.
A Citigroup (C) spokesman highlighted the bank's high Tier 1 capital ratio, a measure of financial strength, and said it continues to cut assets on its balance sheet, reduce expenses and streamline its businesses for future " profitable growth." He declined to comment further.
Citi isn't having conversations with the U.S. government about nationalization, Reuters reported, citing two unidentified people close to the New York-based bank. However, those people also said the U.S. Treasury has not disclosed much more to Citigroup than it has to the broader public about its plans for the banking sector.
"We see no reason to nationalize a bank that is profitable, well capitalized and actively lending," said Scott Silvestri, a spokesman at Bank of America ( BAC).
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