Bloomberg Stocks Decline, Treasuries Gain on Skepticism Over Bank Rescue

Feb. 10 (Bloomberg) -- U.S. stocks fell, sending the Standard & Poor’s 500 Index to its biggest drop since Barack Obama’s inauguration, while Treasuries rallied on skepticism that the government’s bank rescue will work. The dollar and gold rose.

Bank of America Corp. and Citigroup Inc. slipped more than 15 percent after Treasury Secretary Timothy Geithner said he’s still “exploring a range of different structures” to bail out lenders. Principal Financial Group Inc. plunged 30 percent on concern the life insurer needs more capital. Alcoa Inc. slumped 10 percent after S&P cut the aluminum producer’s credit rating to the lowest investment grade. Nine S&P 500 stocks rallied. All Dow Jones Industrial Average companies fell at least 2.8 percent. more...