Geithner pledges forceful attack on banking crisis
Treasury Secretary Timothy Geithner said Tuesday the new administration will wage an aggressive battle against the worst financial crisis in seven decades through programs designed to increase consumer lending and remove toxic assets from banks’ balance sheets.
But investors appeared wary of the government’s latest plans. The Dow Jones industrial average plunged about 270 points in afternoon trading as financial stocks led the market lower, reflecting Wall Street’s growing concerns about the government’s ability to revive the banking industry.
The efforts were part of the government’s major overhaul of the widely criticized $700 billion financial rescue program.
The Federal Reserve said it would expand the size of a key lending program to as much as $1 trillion from $200 billion. The program, which has yet to begin operations, is designed to boost resources for consumer credit and small business loans.