January 16, 2009

The banks may need a bigger bailout.The government is mulling another multibillion-dollar aid package for Bank of America Corp., raising the possibility that much more taxpayer money will be needed to keep the banking industry from edging back toward the abyss.

Investors took the news badly. Bank of America shares fell as much as 28 percent to their lowest level in 18 years before closing down 18 percent. Citigroup Inc. shares fell to a near 16-year low, closing down 15 percent, amid concerns about its stability.