After Citi bailout, bank stocks push markets lower

Another bad session for bank stocks, including beleaguered and bailed-out Citigroup (C), pushed all three major indexes lower today. The Dow Jones Industrial Average fell 1.66 percent to 7,063, the S&P 500 dropped 2.36 percent to 735 and the Nasdaq declined slightly less than 1 percent to 1,378.

Citi got crushed after announcing the U.S. government agreed to convert up to $25 billion of its preferred-stock holdings to common equity. It fell 39 percent to $1.50, less than half of the price taxpayers are paying per share. Bank of America (BAC) also fell more than 25 percent.

General Electric (GE) fell 6.5 percent to $8.51 after cutting its dividend in an effort to preserve its top credit rating. The conglomerate's market capitalization has plummeted 47 percent this year on concerns that losses in its financial unit could imperil the parent company.