* Autos slip as bankruptcy threat looms
* Banks fall on Spain bailout, Geithner
* Futures fall: S&P 21.40 points, Dow 173, Nasdaq 21
* For up-to-the-minute market news click on []
(Adds CF buyout rejection)
NEW YORK, March 30 (Reuters) - Wall Street was set for a
sharply lower open on Monday as the Obama administration raised
the specter of bankruptcy for two major U.S. automakers and
Spain had to rescue regional savings bank CCM.
The administration grabbed control of the failing U.S. auto
industry on Monday, forcing out General Motors Corp's <GM.N>
CEO, pushing Chrysler LLC toward a merger and threatening
bankruptcy for both. For more see [].
GM shares tumbled more than 20 percent in pre-market trade
while Ford <F.N> shed 3.5 percent to $2.74.
"The worst part about this is anyone else who may need
government assistance or help realizes that they are in for it;
the government will put a heavy hand and tell you what to do,"
said Joe Saluzzi, co-manager of trading at Themis Trading in
Chatham, New Jersey.
"And when government gets involved, most of the time, it's
inefficient."
European markets fell after Spain was forced into its first
bank rescue since the financial crisis began and Germany and
Britain also acted to shore up lenders as the sector awaited
the brunt of the impact of rising bad loans. []
Adding to the bank worry were comments from U.S. Treasury
Secretary Timothy Geithner on Sunday that some banks still need
large amounts of help and the government will have about $135
billion left after other banks give back some of the bailout
money. []
Banks shares fell in pre-market trade, as Citigroup <C.N>
slid 8.4 percent, Bank of America <BAC.N> dropped 7.6 percent,
Wells Fargo <WFC.N> shed 5.7 percent and JP Morgan Chase & Co
<JPM.N> fell 4.7 percent.
S&P 500 futures <SPc1> fell 21.40 points and were below
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> slid 173
points, and Nasdaq 100 <NDc1> futures were off 21.00 points.
GM CEO Rick Wagoner, who presided over the company's rapid
decline in the past five years and had run the automaker since
2000, was forced out at the request of the autos panel headed
by former investment banker Steven Rattner. A majority of GM's
board will also be replaced.
On the merger front, U.S. fertilizer producer CF Industries
Holdings Inc <CF.N> said its board of directors rejected
Canadian fertilizer company Agrium Inc's <AGU.TO><AGU.N>
revised takeover offer of about $3.8 billion. []
Wall Street ended a strong week on a down note on Friday as
investors booked profits in the wake of an upward surge and
bank shares dropped after bank executives indicated March had
been a tougher month for them than the previous two.
Despite Friday's decline, the recent rally has taken the
broad S&P 500 index up 20.6 percent since it hit a 12-year low
on March 9, although it is off 9.7 percent for the year so
far.
(Editing by James Dalgleish)
