‘Agressive’ plan short on specifics, critics say

Filed under: Daily News |
WASHINGTON (AP) – Treasury Secretary Timothy Geithner said today 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 analysts said they were disappointed by the lack of details in the plans, and investors appeared wary. The Dow Jones industrial average plunged about 330 points in afternoon trading as financial stocks led the market lower, reflecting Wall Street’s concerns that the government’s latest plans aren’t enough to revive the banking industry.

The new efforts are 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.