U.S. stocks extended losses on Thursday, with the Dow falling 2 percent, after comments from President Obama on his banking proposal, including placing new limits on liability at the largest firms.

The Dow Jones industrial average <.DJI> was down 217 points, or 2 percent, at 10,386. The Standard & Poor's 500 Index <.SPX> was down 20 points, or 1.8 percent, at 1,118. The Nasdaq Composite Index <.IXIC> was down 30 points, or 1.3 percent, at 2,261.

(Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)

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