Posted by: Allison Franklin
Dow soars over 450 points on plan to aid banks
Program to remove some $1 trillion in bad assets from their books
NEW YORK - Wall Street is getting the good news it wants on the economy’s biggest problems: banks and housing.
Investors reignited a two-week rally Monday, cheering the government’s plan to help banks remove bad assets from their books as well as a report showing a surprising increase in home sales. Major stock indicators jumped more than 3 percent including the Dow Jones industrial average, which surged 450 points.
The Treasury Department’s bad asset cleanup program would tap money from the government’s $700 billion financial rescue fund and also involve help from the Federal Reserve, the Federal Deposit Insurance Corp. and the participation of private investors.
Treasury Secretary Timothy Geithner had announced an outline of the program last month but provided few details then about how it would work, leading to a poor reception in the markets.
Program to remove some $1 trillion in bad assets from their books
NEW YORK - Wall Street is getting the good news it wants on the economy’s biggest problems: banks and housing.
Investors reignited a two-week rally Monday, cheering the government’s plan to help banks remove bad assets from their books as well as a report showing a surprising increase in home sales. Major stock indicators jumped more than 3 percent including the Dow Jones industrial average, which surged 450 points.
The Treasury Department’s bad asset cleanup program would tap money from the government’s $700 billion financial rescue fund and also involve help from the Federal Reserve, the Federal Deposit Insurance Corp. and the participation of private investors.
Treasury Secretary Timothy Geithner had announced an outline of the program last month but provided few details then about how it would work, leading to a poor reception in the markets.
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