World
U.S. stock markets respond to rescue plan
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Source: CCTV.com | 11-25-2008 13:46
Special Report: Global Financial CrisisU.S. stock markets are up as President-elect Barack Obama unveils his economic team and Washington injects 20 billion US dollars into Citigroup, the country's second-largest bank.
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| A man walks by a Citibank branch at the US bank Citigroup world headquarters on Park Avenue, in New York. Wall Street and European stock markets soared Monday as investors cheered a massive bailout for US banking giant Citigroup and the prospect of more government money to ease the pain of recession.(AFP/File/Emmanuel Dunand) |
Outgoing President George W. Bush says there could be more help for other institutions.
The biggest US bank bailout pushed Citigroup stocks higher by nearly 50 percent -- one of the Dow Jones' top-weighted advancers.
The Dow rose more than 3 percent. The S&P 500 Index gained over 4.5 percent. The Nasdaq was up nearly 4 percent. Analysts say clarity on the Trouble Asset Relief Program is good news for the market.
The President approved Treasure Secretary Hank Paulson's advice to rescue Citigroup on Sunday, and believes it's necessary to safeguard the financial system and help the economy recover.
George W. Bush, US President, said, "This is a tough situation for America. But we'll recover from it. And the first step to recovery is to safeguard our financial system. Last night on Air Force One coming back from Peru, I talked at length to the Secretary about his recommendation. The decision was made to safeguard Citi -- Citicorps. We have made these kind of decisions in the past -- made one last night. And if need be, we're going to make these kind of decisions to safeguard our financial system in the future."
Bush has also spoken with President-elect Barack Obama -- part of his promise to cooperate closely with the Obama camp.
The White House has not said which companies it will help next, but says Treasury is reconsidering whether it will leave half the 700 billion bailout plan for the Obama administration.
Editor:Zhang Pengfei
