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[BullsEye]

GM Rollers! Plan for toxic assets lifts banking sector
(MarketWatch) -- The U.S. financial sector rallied Monday after the Treasury Department unveiled a long-awaited government plan to rid banks' balance sheets of troubled assets and get credit flowing again.
Shares of Citigroup Inc. (C:Citigroup Inc
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Last: 3.11+0.49+18.63%

C 3.11, +0.49, +18.6%) were up more than 25% in early trading, while Bank of America Corp. (BAC:bank of america corporation com
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Last: 7.13+0.94+15.19%

BAC 7.13, +0.94, +15.2%) gained more than 15%.
The Financial Select Sector SPDR Fund (XLF:Select Sector SPDR: Financial Select Sector SPDR Fund
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Last: 8.85+0.71+8.72%

10:49am 03/23/2009

XLF 8.85, +0.71, +8.7%) , an exchange-traded fund, opened higher by 7%. It is still off about 30% so far this year despite the recent rally in bank stocks.
The Treasury Department detailed a plan designed to help investors purchase $500 billion in so-called toxic assets remaining on bank balance sheets. The program will use $75 billion to $100 billion in capital from the Troubled Asset Relief Program, or TARP, and capital from private investors.
Under the plan, the Treasury and private capital will provide equity financing and the Federal Deposit Insurance Corp. will provide a guarantee for debt financing issued by the public-private investment funds to fund asset purchases.
"This program to address legacy loans and securities is part of an overall strategy to resolve the crisis as quickly and effectively as possible at least cost to the taxpayer," Treasury Secretary Timothy Geithner wrote in an opinion piece published in The Wall Street Journal on Monday. Read Geithner's op-ed at WSJ.com.
The plan was announced amid growing public anger over the financial bailout. Much of the fury has been directed at executive bonuses, particularly at embattled insurance giant American International Group Inc. (AIG:American International Group Inc
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Last: 1.47+0.21+16.87%

AIG 1.47, +0.21, +16.9%) . AIG was again in the news over the weekend on reports that its competitors have complained to Federal Reserve Chairman Ben Bernanke that the company is getting an unfair advantage as a result of government aid.
Dutch bank ING Groep (ING:ING Groep NV
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Last: 6.87+1.14+19.90%

10:49am 03/23/2009

ING 6.87, +1.14, +19.9%) has asked workers to return last year's bonuses in an effort to quell the backlash over executive compensation, Bloomberg reported Monday.
J.P. Morgan Chase & Co. (JPM:JPMorgan Chase & Co
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Last: 25.89+2.74+11.84%

10:49am 03/23/2009

JPM 25.89, +2.74, +11.8%) , which has received billions in TARP funds, is moving ahead with a $138 million plan to buy a pair of luxury corporate jets and build an aircraft hanger, according to ABC News.
Shares of retail-real-estate giant General Growth Properties Inc. (GGP:General Growth Properties Inc
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Last: 0.55+0.11+25.00%

10:49am 03/23/2009

GGP 0.55, +0.11, +25.0%) soared after the troubled company said its subsidiary has extended the deadline for its previously announced consent solicitation. The move gives General Growth more time to work with its creditors as it struggles to avoid filing for bankruptcy.
Private-equity giant Hellman & Friedman has formed a consortium to purchase Barclays' (BCS:Barclays PLC
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Last: 6.85+1.23+21.87%

BCS 6.85, +1.23, +21.9%) exchange-traded fund business, iShares, for about $5 billion, according to a media report.