Stocks Open Lower After Bank Bailout Plan

Dow Jones 11:00 Averages

30 industrials         11255.51 down 132.93 or -1.17 percent
20 transportation       5035.92   down 64.39 or -1.26 percent
15 utilities           448.55   down 3.11 or -0.69 percent
65 stocks             4044.85   down 45.35 or -1.11 percent

Democrats wants pay limits, loan aid in bailout
   
WASHINGTON (AP) - Senate Democrats are proposing to add government help for homeowners and limits on executive compensation to the government’s $700 billion financial bailout of Wall Street.

A draft of the plan obtained Monday by The Associated Press shows that Senate Banking Committee Chairman Chris Dodd also wants the government to get a stake in the companies helped by the unprecedented rescue.

The measure would end the program at the end of next year, instead of creating a two-year initiative as the Bush administration has requested. It also would add layers of congressional oversight, including an emergency board to keep an eye on the program with two House and Senate appointees.

NEW YORK (AP) - Wall Street is moderately lower in early trading as investors nerously await further news about the government’s plan to buy $700 billion in banks’ mortgage debt.

Investors are also digesting a mix of corporate news. Microsoft Corp. says it plans to repurchase its shares. And Morgan Stanley says it is working to sell up to a 20 percent stake to Japan’s Mitsubishi UFJ Financial Group Inc.

Late Sunday, the Federal Reserve granted Morgan Stanley and Goldman Sachs, the country’s last two major investment banks, approval to change their status to bank holding companies.

The Treasury market calmed only slightly.

Meanwhile, the Dow Jones industrials are down about 66 at the 11,322 level.

Bush urges Congress to pass quick relief bill

WASHINGTON (AP) - Pressuring Congress, President Bush says the “whole world” is watching to see if Republicans and Democratic lawmakers can quickly agree on a plan to halt a financial meltdown without adding extra elements to the legislation.

Bush’s move Monday came as some leading congressional Democrats called for a cautious, deliberative approach to stabilizing troubled financial markets. Some Democrats are seeking to add provisions to the massive rescue bill, such as limiting pay for executives of the troubled companies in need of the bailout.

The president said such efforts would “undermine the effectiveness of the plan.“

Bush added: “Indeed, the whole world is watching to see if we can act quickly to shore up our markets.“
   
    (Copyright 2008 by The Associated Press.  All Rights Reserved.)