Stocks Surge After News of Bank Assets Plan

2009-03-25 03:37:31 (GMT) (WiredPRNews.com - Business, News)

Wall Street responds positively to White House unveiling plan for toxic bank assets

The Dow saw huge jumps after the White House released news of their toxic bank assets plan.Wired PR News – Wall Street investors reacted positively to White House news on Monday regarding a plan for dealing with bad bank assets. As reported by the Associated Press (AP), the Obama administration will purportedly take over an estimated $1 trillion in mortgage securities that have soured, with government funding as well as the assistance of private investors.President Barack Obama is quoted as stating that the efforts will facilitate bank lending, in order to ensure that “families can get basic consumer loans, auto loans, student loans, (and so) that small businesses are able to finance themselves, and we can start getting this economy moving again.” Treasury Secretary Timothy Geithner is also quoted as stating of the plan, “This will help banks clean up their balance sheets and make it easier for them to raise capital.”As noted by the AP, the Dow increased 500 points following the announcement.