Tracking the bailout
January 8, 2009 – 12:33 pm
Here’s a nifty index to add to your quote screen (hat tip CB):
Nasdaq OMX (NDAQ.O) has launched an index to track the performance of 24 companies bailed out by U.S. taxpayers — and it’s already down.
The index, comprising companies that have received at least $1 billion from the Troubled Asset Relief Program (TARP) and other government aid plans, is called the Nasdaq OMX Government Relief Index.
The index began with a value of 1000.00 on Jan. 5. It stood at 948.57 Thursday morning.
The index is dominated by financial institutions such as Bank of America Corp, JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co, but also includes American International Group Inc and General Motors Corp.
All the companies are equally weighted in the index. New components will be added as more firms receive more and more government funds, John Jacobs, executive vice president of Nasdaq OMX, told Reuters.
“With a huge expenditure of taxpayer money, we should have some measures out there to measure the effectiveness of it, so we can see five years from now, or every month … in between, how effective was the bailout,” he said.
The index was created on January 5th; I’m guessing the historical data is based on the historical price info for component stocks.
2 Responses to “Tracking the bailout”
Is there any indication as to whether NASDAQ has added Bank of America into that Index?
By Paul on Jan 17, 2009
yes. see paragraph 4 of the quoted section above.
By RolfeWinkler on Jan 17, 2009