Last Updated: February 26th, 2009: 5:02 PM ET---The major US equity indices jumped at the open despite a trio of disappointing economic reports and earnings results, but later collapsed like a wet taco after the FDIC issued a report on its bank "problem list." The Dow closed off 1.2% to 7,182 with General Motors (NYSE:GM) and Merck (NYSE:MRK), both closing off 6.7%, and both leading the industrial lower. On the other hand, Bank of America (NYSE:BAC) and JP Morgan (NYSE:JPM) provided leadership, closing up 3.1% and 6.1%, respectively. The Nasdaq dropped 2.4% to 1,391 and the S&P 500 fell 1.6% to 753. Health care was the worst performing sector, closing off 4.9%, while financials and telecom were the only sectors to close with gains. Towards the end of the session, the Federal Deposit Insurance Corp (FDIC) issued a report saying that the combined loss for the nation's banks during the fourth quarter of 2008 amounted to $26.2 billion. In addition, the report showed the amount of capital set aside for possible losses increased to $69.3 million. Meanwhile, the report showed the number of banks that made the "problem list" rose to 252, up two fold, and the entire banking industry had its worst quarter since 1990.

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