Dow at 8,008, down 191. Rachel
NEW YORK (AP) — News that Bank of America Corp. needs another government cash infusion sent stocks sliding Thursday as investors feared that the banking crisis of last fall may have returned.
Investors dumped bank stocks, which led the market lower. The major stock indexes fell more than 1.5 percent, including the Dow Jones industrial average, which lost 150 points. The Dow was falling for the seventh straight session.
The federal government is considering a fresh multibillion-dollar aid package for Bank of America to help it absorb losses at Merrill Lynch, according to a person with knowledge of the discussions, who spoke to The Associated Press on condition of anonymity because of the sensitive nature of the discussions. The person said the new aid package could be modeled along the lines of the financial lifeline that was thrown to Citigroup Inc. in November.
Other media organizations have had similar reports of a potential aid package for the company.
