Dow Tumbles Following Geithner Speech
Associated Press
Transcript
investors turned skeptical about the government's latest bank bailout plan striking the dow jones industrial average significantly lower in midday trading government support has to come treasury secretary timothy geithner said the government could mobilize well over a trillion dollars in public and private funds to unclog frozen credit markets but the broad outlines of the plan left the market uneasy investors seem to be questioning whether this plan which followed previous efforts in the final months of 2008 would be the one that works bank stocks bore the brunt of investor unease bank of america fell eleven percent to six dollars fifteen cents while wells fargo fell six and a half percent to 17.82 regional banks also showed big drops fifth third bank corp and huntington bank shares both fell 12 percent after geithner's remarks mark hamrick the associated press
Feb. 10: Gov't Unveils New Plan, Stocks Tank
Associated Press
Transcript
[Music] not even news of the more than $1.8 trillion set to be Unleashed into the slumping economy was able to lift wall Street's mood Tuesday frustrated investors unloaded stocks following the latest Bank bailout plan announced by treasury secretary Timothy gner and the Senate's passage of President Obama's $838 billion stimulus plan Traders and investors said it was the lack of specifics in gers plan that ignited worries they needed to deliver a knockout punch something that was either a consistent with what the Bush Administration had already begun or something completely new and different and they did neither of those things and the lack of details from gner helped to feed the sell off analysts don't see much of a recovery until concrete actions are taken on the stimulus plan I think it's going to take some time first off we probably won't get a package that is agreed upon by both houses of Congress until uh the next week or so we're not going to get it signed uh by the president so you could almost say that that February is pretty much gone the DOW Industrials fell 382 points to 7889 broader stock indicators also tumbled the standard and pores 500 Index fell 43 to 827 and the NASDAQ dropped 67 points to 1525 stocks extended their slide after fed shman Ben Bernan said little on the plan during testimony at a house Financial Services Committee hearing in instead Bernan said credit markets are showing promise and that any fix to the crisis would take time to work Mark hamri the Associated Press
Fed. Unveils Forceful Attack on Banking Crisis
Associated Press
Transcript
and right now critical parts of our financial system are damaged the credit markets that are essential for small businesses and consumers are not working borrowing costs have risen sharply for state and local governments for students trying to pay for college and for businesses large and small many banks are reducing lending and across the country they are tightening the terms of loans last Friday we learned that the economy had lost 3 million jobs last year and an additional 600,000 jobs just last month as demand Falls and credit tightens businesses around the world are cutting back the Investments that are essential to Future growth trade among nations is Contracting sharply as Finance dries up home prices are still falling as foreclosures rise and even creditworthy borrowers are finding it harder to finance the purchase of a new home or to refinance their existing mortgage instead of catalyzing recovery the financial system is working against recovery at the same time the recession is putting greater pressure on banks this is a dangerous Dynamic and we need to arrest it it's essential that every American understand that the battle for economic recovery must be fought on two fronts we have to jump start job creation and private investment and we must get credit flowing again to businesses and to families
Obama: Time Washington Does Its Part
Associated Press
Transcript
[Applause] you know the American people all of you you you've got you've got common sense you understand it took us a long time to get into this fix it's we're not going to get out of it overnight but what you don't have patience for is just listening to a bunch of bickering in Washington and nothing getting done and I know that there are a lot of folks here in Fort Myers and across Florida that are struggling but I also know because I spent a lot of time in this state that you got some of the best workers in the world here you've got some of the best Neighbors in the world who step up who help each other who make sacrifices when times are tough I know that all the people are asking for is a chance to work hard they're not looking for a handout they just want to be able to work hard and translate that hard work into a good life for themselves and their families so you're doing your part down here it's time that Washington did its part too