Investors paused to lock in some profits today as lingering angst surrounding the job market and other areas of the economy restrained the bullish urge. The Dow Jones Industrial Average retreated 121 points, while the technology-rich Nasdaq finished flat, and the broad S&P 500 lost just under 1%. For more, please read:
http://money.cnn.com/2009/02/04/markets/markets_newyork/

Exploring A Toxic-Asset Guarantee
Whether or not a “bad bank” to hold troubled mortgage-backed securities is ever created, Treasury Secretary Tim Geithner is exploring the idea of guaranteeing those assets to keep them on banks’ balance sheets while shielding them from the possibility of failure. Economists around the nation have joined in the debate.

A Bailout For Homeowners?
Both political parties are putting forward plans to shore up the housing market by rescuing homeowners facing foreclosure. The Republican plan would allocate up to $300 billion to subsidize troubled mortgages; the White House is currently looking at freeing up $50 billion to $100 billion, either from the TARP fund or elsewhere.

Curbing Salaries At Bailed-Out Banks
President Obama has capped compensation for executives working at the banks rescued by the TARP program to $500,000 a year. Severance packages and other high-end benefits are also facing new restrictions as the new administration works to rein in what many have considered outrageous spending from troubled banks on perks.