Fears that Citigroup and Bank of America would be nationalised shook global markets on Friday, prompting the Obama administration to reaffirm its commitment to private ownership of financial institutions.

“This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring that they are regulated sufficiently by this government,” said Robert Gibbs, White House press secretary. “That’s been our belief for quite some time, and we continue to have that.”