New York’s Wall Street hit a 12 year low by market close Monday.

New York, NY (–Reuters reported S&P 500 and Dow Jones industrial markets close, on Monday, with a record 12 year low. The Dow closed at 7,114.94 and Standard & Poor’s 500 Index closed at 743.32. Both losses total more than 3% overall for the business day. According to financial industry insiders investors are losing faith in the U.S. government’s rescue plan.

The federal government reported today it may convert its stake in Citigroup to a big common stock holding alarming American consumers. CNBC reported American International Group, a large insurance company, may be forced into bankruptcy if the feds fail to secure funding. Further reports on declining business and consumer spending in technology products hit IBM and Hewlett-Packard hard on Monday.

Nationwide consumer fears of U.S. banks being nationalized has not helped the declining financial market. Citigroup and Bank of America rebounded by 9.7% and 3.2% on Monday after falling more than 35% at the close of business Friday. Almost $10 trillion in U.S. stocks has been lost since Wall Street’s record high in October 2007.

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