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Tuesday, June 9, 2009

Market reacts to bailout

NEW YORK — Investors are reacting coolly to word that 10 of the nation's largest banks can repay $68 billion in bailout money.

Stocks are zigzagging in a narrow range Tuesday following the Treasury Department's widely expected announcement that the banks will be allowed to repay the money they received from the $700 billion bailout fund Congress created in October at the height of the financial crisis.

The banks have been eager to escape government restrictions on executive compensation. American Express Co., JPMorgan Chase & Co. and Morgan Stanley are among those given the OK to repay the money.

At midday, the Dow is down 30 at 8,734. The Standard & Poor's 500 index is down 1 to 938, while the Nasdaq composite index is up 8 to 1,851


by the associated press

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