US markets fell sharply in a broad-based decline as the government announced details of the bank rescue plan.
The 'financial stability plan,' as it's now called, consists of four main components. It will set up a public-private fund to mop up to $ 500 billion of spoiled bank assets. It will also set up a consumer-lending facility to support up to $ 1 trillion in new lending.
The plan will devote up to $ 50 billion to help stem home foreclosures and provide new funding to banks after a "stress test" to determine if the bank is healthy. In economic news, wholesale inventories fell by 1.4% in December.
At closing bell, Dow Jones ended 382 points or 4.6% down at 7,889 and Nasdaq was down 67 points or 4.2% at 1,524.7. S&P 500 was down 42.4 points or 4.9% at 827.2.
The 'financial stability plan,' as it's now called, consists of four main components. It will set up a public-private fund to mop up to $ 500 billion of spoiled bank assets. It will also set up a consumer-lending facility to support up to $ 1 trillion in new lending.
The plan will devote up to $ 50 billion to help stem home foreclosures and provide new funding to banks after a "stress test" to determine if the bank is healthy. In economic news, wholesale inventories fell by 1.4% in December.
At closing bell, Dow Jones ended 382 points or 4.6% down at 7,889 and Nasdaq was down 67 points or 4.2% at 1,524.7. S&P 500 was down 42.4 points or 4.9% at 827.2.
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