Dodd Says Obama Is Seeking To Avoid Nationalizing Banks (BAC, C)

Senate Banking Committee Chairman Christopher Dodd told Bloomberg TV that the Obama administration is seeking to avoid nationalizing banks, and that he doesn't want the government to take that step.

Dodd said President Obama and Treasury Secretary Tim Geithner are working hard on programs to help rescue the financial-services industry.

Bank of America (NYSE: BAC) and Citi (NYSE: C) are down 18% and 21%, respectively, on growing fears about nationalizing. Other banks stocks are also under pressure today. In addition, Wells Fargo (NYSE: WFC) is down 17% and JPMorgan (NYSE: JPM) is down 6%.

Bank of America CEO Ken Lewis told senior leaders in a meeting yesterday that policy officials in Washington assured him that a nationalization option isn't on the table. A company spokesperson said today that they see no reason to nationalize the company.

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