Wall Street rallies amid news of Fed's plan to absorb toxic assets
THE ASSOCIATED PRESS
Updated Monday, March 23rd 2009, 10:47 AM
The Obama administration took a fresh shot at ending a national paralysis in lending Monday, teaming up with investors to buy bad bank assets and ease credit for hard-pressed consumers and businesses.
The program, announced by Treasury Secretary Timothy Geithner, was not the first such attempt by the new administration to revitalize an economy mired in recession.
Geithner pleaded for patience, saying work to rehabilitate the banking and financial industry has to go forward despite "deep anger and outrage" over bad lending and investment practices.
The newest initiative, he told reporters, will seek to harness government and private resources to purchase an initial half-trillion dollars of bad assets off the balance sheets of banks. And he held out the expectation that the program eventually could grow to $1 trillion
Wall Street seemed to feel rejuvenated, at least at the opening. In late morning, the Dow Jones industrial average was up 221 at 7,500. The Standard & Poor's 500 index was up 23 at 792, and the Nasdaq composite index is up 42 at 1,500.