PAUL KANGAS, NIGHTLY BUSINESS REPORT ANCHOR: Another blow to investor confidence -- stocks plunge as General Motors auditor raises doubt about the auto maker`s ability to survive. Coming up, a look at what bankruptcy could mean for GM. SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: While many firms are struggling, Cisco Systems sees a silver lining in the recession. We talk with CEO John Chambers about how the tech giant is positioning itself in this downturn.

KANGAS: Citi shares breach the $1 level and that has many wondering if the price will prompt giant index funds to dump the stock. An update in tonight`s stocks in the news.

GHARIB: Gold shines again today, jumping over $21 an ounce on safe haven buying. Tonight`s "Two Ways to Play" looks at both sides of investing in gold.

KANGAS: I`m Paul Kangas.

GHARIB: And I`m Susie Gharib. This is NIGHTLY BUSINESS REPORT for Thursday, March 5.

Good evening, everyone. A brutal day in the stock market as shares of some of America`s most well-known companies got decimated in a continuing crisis of confidence. Citigroup traded as low as $0.97 before closing just over a dollar and General Motors plummeted to $1.86. Those declines dragged the Dow down 281 points to 6,594, its lowest level since April 1997. And the S&P 500 index now stands at 683. That`s a 13-year low. The big worry for investors now is whether some of those troubled blue chip companies will even survive. At the top of the list, General Motors. Its auditor today warned that the struggling auto maker may not be able to stay in business. Scott Gurvey reports.

SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: Bankruptcy seems to be a dirty word, at least when it comes to General Motors. The mere mention of the possibility in an SEC filing was enough to send Wall Street reeling. And the uncertainty is adding to the daily trauma in GM showrooms, where sales are at record lows. In return for taking more than $13 billion in taxpayer money, GM promised to come to terms with its stakeholders. So far, that hasn`t happened and analyst David Whistin says at some point, bankruptcy has to be an option.

DAVID WHISTON, AUTO ANALYST, MORNINGSTAR: It`s possible each side is waiting for the other to move, between the UAW and the unsecured creditors. But, you know, ultimately, you might just have to go into bankruptcy, with the government backing providing all the dip financing to keep them going while in Chapter 11. And then that way, GM has a lot more leverage over both the unions and its bondholders.

GURVEY: A bankruptcy could force agreement on outstanding issues like funding employee and retiree health benefits, dropping brands and closing dealerships and restructuring outstanding debt. In a new General Motors, current shareholders would probably be wiped out. Current debt holders would face a crew cut, at best. But analyst Efriam Levy says there is one big question a new GM can`t answer.

EFRAIM LEVY, AUTO ANALYST, STANDARD & POOR`S: Is it going to be able to make cars that the consumers will want to buy, that don`t have to be discounted and that they can make a profit on? Is that something that they will be able to accomplish?

GURVEY: On one item, almost everyone agrees -- a liquidation of General Motors would have a tremendous impact on the American economy.

WHISTON: I`ve always said a GM liquidation would be like dropping an atomic bomb on the U.S. manufacturing sector and the ramifications would be terrifying. You would see so many parts suppliers would go out of business, not to mention the job losses you`d be talking about would be in the millions, just from a GM liquidation alone.

GURVEY: The White House today renewed its commitment to what it calls a restructured and retooled American auto industry, which analysts say means a GM liquidation is off the table, even if a Chapter 11 reorganization is not. Scott Gurvey, NIGHTLY BUSINESS REPORT, New York.

KANGAS: Some big banks are now saying no thanks to money they got from the Troubled Asset Relief Program. House Financial Services Committee Chairman Barney Frank says Northern Trust will return more than $1.5 billion to the Treasury. Northern Trust came under fire last week for lavish spending on a pro golf tournament and parties. And U.S. Bancorp is cutting its dividend to speed up repayment of the $6 billion bailout it took from Uncle Sam. U.S. Bancorp`s CEO called the TARP quote, a lousy program, end quote.

GHARIB: A call to action on health care reform today from President Obama. The president says, if we want to rebuild our economy and create jobs, then we have to tackle soaring medical costs now. He brought together lawmakers and business, labor and insurance groups for a summit on reforming costs. The president says he wants to figure out what will work.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: In this effort, every voice has to be heard. Every idea must be considered. Every option must be on the table. There should be no sacred cows. Each of us must accept that none of us will get everything that we want and that no proposal for reform will be perfect. If that`s the measure, we will never get anything done.

KANGAS: The budget released by the White House last night included $634 billion for healthcare reform.

Wall Street spent the morning giving back yesterday`s gains and then some, as that GM bankruptcy warning spooked investors. There was also disappointment after China`s leader indicated a second stimulus plan was not in the works. At noon, the Dow posted a 207 point loss, with the NASDAQ off 40 points. The downward spiral continued this afternoon as caution grew ahead of tomorrow`s employment report, so stocks ended near the day`s lows. The Dow Industrial Average closed off 281.40 points at 6,594.28. The NASDAQ slumped 54.15 ending at 1,299.59, while the Standard & Poor`s 500 lost 30.32 points at 682.55. Over in the bond market, the 10-year note rose 1 12/32 to 99 14/32, putting the yield at 2.82 percent.

GHARIB: During this recession, most companies have been scaling back and cutting costs, but not Cisco Systems. The giant Internet equipment manufacturer is making acquisitions and going full speed ahead with its expansion plans. As we continue our series, "Reviving the Economy: What Should Business Do?" I sat down with Cisco CEO John Chambers and asked him to explain his business strategy.

JOHN CHAMBERS, CHAIRMAN & CEO, CISCO SYSTEMS: We see this as an opportunity for Cisco to move into many market adjacencies. We have been through this four times before, in `93, `97, 2001 and 2003. Each time we`ve gained market share and we have kind of if you will a playbook for how we deal with it. So we`re going to be very aggressive through this downturn. We have $34 billion in cash. We have new business models and new organization structure which allow us to take on probably more than two dozen new opportunities.

GHARIB: John, you have been making acquisitions. You`ve been investing heavily in research and development. You`ve been expanding in China and India. It seems like an unusual strategy during a severe recession.

CHAMBERS: My parents were doctors. They taught me from the very beginning, focus on what you can control and influence.