Last Updated: February 27th, 2009: 5:02 PM ET---The major US equity indices closed with significant losses Friday, haunted by a dividend cut from General Electric (NYSE:GE), a disappointing preliminary GDP contraction of -6.2% and another government lifeline for Citigroup (NYSE:C). The Dow Jones Industrial Average fell 119 points, or 1.7%, to 7,063 after touching a new 52-week low of 7,034. Citigroup (NYSE:C) led the Dow lower, off 42.7%, followed by shares of Bank of America (NYSE:BAC), which closed 25.8% lower. Of the seven components able to close in the green, IBM (NYSE:IBM) provided leadership, closing 3.4% higher. The Nasdaq Composite Index closed 14 points lower, or 1%, to 1,378. Meanwhile, the S&P 500 turned in the worst performance, off 2.4% for the day and off 4.5% for the week, settling at 735. Of the ten major economic sectors only consumer services was able to close in the green, up 0.2%. Financials closed 5.7% lower, led by the Citi news, and health care closed off 4.1%. Prior to the open, Citigroup (NYSE:C) issued a report saying the Obama administration plans to give them another lifeline, now its third, which involves the Treasury Department converting preferreds into common equity. The government's stake will probably be in the range of 30% and 40% following the conversion, according to sources. The Obama administration plans on requiring Citigroup (NYSE:C) to raise capital through private sources as well as shakeup its board of directors in an effort to strengthen the bank. Citigroup (NYSE:C) shares fell to $1.50 on the news.

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