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.