Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

France's Plan to Tackle Racism

Read more

THE WORLD THIS WEEK

Marine Le Pen and Thomas Piketty in Time magazine's power list; EU takes on Google; Gunter Grass dies (part 2)

Read more

THE WORLD THIS WEEK

Deadly Crossing: Migrants desperate to reach Europe; Abadi in Washington (part 1)

Read more

EYE ON AFRICA

Xenophobic attacks in South Africa: anti-violence marches and anti immigration protest

Read more

FRANCE IN FOCUS

French PM outlines action plan against racism, anti-Semitism

Read more

REPORTERS

Turkey’s hidden Armenians search for stolen identity

Read more

REVISITED

Families of slain Marikana miners still demanding justice

Read more

#TECH 24

Europe vs. Google: EU accuses search giant of market dominance abuse

Read more

#THE 51%

Women in America: Land of the free, home to the less-paid

Read more

Business

Wall Street toasts Citigroup rescue

Text by AFP

Latest update : 2008-11-25

Wall Street capped a day of euphoria across markets as the Dow Jones jumped up 4,93% at the close Monday, boosted by the rescue of US banking giant Citigroup and the official nomination of a new US Treasury secretary.

Wall Street shares saw a massive rally Monday amid frenzied buying following a US government rescue of banking giant Citigroup.
   
The Dow Jones Industrial Average vaulted 396.97 points (4.93 percent) to 8,443.39 while the Nasdaq composite soared 87.67 points (6.33 percent) to 1,472.02 just after the closing bell.
   
The Standard & Poor's 500 index surged 51.78 points (6.47 percent) to a preliminary close of 851.81.
   
The rally was the second in two sessions following Friday's comeback on news that president-elect Barack Obama was to name seasoned New York Fed chief Timothy Geithner as his Treasury secretary to head economic policy.
   
The gains extended after news of the US government rescue of Citigroup, which got fresh capital and a guarantee for its troubled mortgage assets, averting a possible collapse.
   
The government agreed to back some 300 billion dollars in troubled mortgage assets and inject another 20 billion dollars in capital, boosting its stake in one of the biggest banks.
   
"The failure of Citi, with its two trillion dollar balance sheet, would have been absolutely catastrophic to the global banking system," said Fred Dickson at DA Davidson & Co.

Date created : 2008-11-24

COMMENT(S)