First draft: Wall Street CEOs, Geithner head to Hill for grilling
When Treasury Secretary Timothy Geithner made his long-awaited speech on Tuesday to unveil the administration’s bank rescue plan, the stock market tanked. Traders said the nearly five percent drop was caused by a lack of specifics in Geithner’s announcement that the government would spend up to $2 trillion to mop up bad bank assets and revive lending.
The main newspapers had banner headlines about the biggest one-day drop for Dow industrials since Dec. 1.
So what will happen today when Geithner heads to Capitol Hill to testify before the Senate Budget Committee? The market will also be watching as top Wall Street CEOs appear in a hearing with the House Financial Services committe to defend their use of $176 billion in taxpayer funds.
President Barack Obama continues his push for the $800 stimulus bill outside of Washington, traveling today to nearby Springfield, Virginia to talk about how jobs will be created with the new plan.
Meanwhile, his emissaries push forward in their efforts to help lawmakers on Capitol Hill hammer out a compromise agreement between the House and Senate versions of the stimulus bill. Obama wants to have the final version on his desk by Feb. 16.
On a lighter note: morning talk shows are all raving about top dog Stump — a mellow, 10-year-old Sussex spaniel who made history as the oldest dog to win “Best in Show” at the Westminster Kennel Club Dog Show. Stump showed that age was no boundary — he came out of retirement and overcame a long illness to win the coveted award at the dog show.
-Photo credit: Reuters/Eric Thayer (Boards on the floor of the New York Stock Exchange on Feb. 10); Reuters/Shannon Stapleton (Stump sits with handler after winning Westminister Dog Show)