- The Washington Times - Tuesday, April 21, 2009

NEW YORK (AP) - A reversal in bank stocks pulled the market higher Tuesday after Treasury Secretary Timothy Geithner told Congress that some banks could be allowed to repay financial bailout funds.

Geithner said the decision on repayments would be left to bank regulators and that “the vast majority” of banks had more capital than they needed.

Stocks had fluctuated earlier Tuesday after a string of lackluster earnings reports and forecasts stoked worries about how quickly the economy can recover. Financial stocks had shown some of the steepest losses.

Banks stocks posted some of the biggest gains after sliding on Monday. JPMorgan Chase & Co. rose $1.69, or 5.7 percent, to $31.38, while Citigroup Inc. rose 22 cents, or 7.5 percent, to $3.16. Goldman Sachs Group Inc. rose $4.14, or 3.6 percent, to $119.15.

In midday trading, the Dow Jones industrial average rose 70.48, or 0.9 percent, to 7,912.21.

Broader stock indicators showed the biggest gains. The Standard & Poor’s 500 index rose 9.80, or 1.2 percent, to 842.19, and the Nasdaq composite index rose 24.69, or 1.5 percent, to 1,632.90.

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