CNBC Market News: Financial Crisis — This Day—One Year Ago: Sept. 23, 2008 - This Day One Year Ago * US * News * Story

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The Financial Crisis: This Day—One Year Ago, Sept. 23, 2008

Published: Wednesday, 23 Sep 2009 | 3:56 AM ET

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By: CNBC.com

A capital idea on Capitol Hill.

The stakes are high Tuesday as Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke head to Capitol Hill to make the case for their $700 billion bailout plan.

This Day 1 Year Ago - A CNBC Special Report - See Complete Coverage
Many members of Congress remain skeptical about the plan, reports Charlie Gasparino. The Treasury chief must convince legislators that the plan is not merely a Wall Street bailout, but a Main Street rescue, needed to ensure the health of the US economy.

Meanwhile, Wall Street is also fending for itself.

Goldman Sachs [GS Loading... () ] says it will receive a $5 billion investment from Warren Buffett's Berkshire Hathaway [BRK.A Loading... () ].

"It's a vote of confidence which is gold plated," says Michael Holland, money manager at Holland & Co. "You don't get better than this."

Top savings and loan Washington Mutual is talking to multiple suitors about a takeover deal, as well as exploring options to raise capital.

What You Were Reading:

Canada's Toronto-Dominion Bank [TD Loading... () ] is weighing a bid for all or part of WaMu, joining a mix of other suitors, sources tell Reuters.

Others weighing possible takeover bids for Washington Mutual include Banco Santander [STD Loading... () ] , Citigroup [C Loading... () ] and JPMorgan Chase [JPM Loading... () ] . HSBC [HBC Loading... () ] and Wells Fargo [WFC Loading... () ] also have looked at Washington Mutual, Reuters says.

Analysts generally agree that WaMu would be more attractive to bidders if the US government would buy some of WaMu's mortgage-related debt as part of the bailout.

The Crisis: 1 Year Later - A CNBC Special Report - See Complete Coverage
"It appears that investors do not believe that the TARP (Troubled Asset Relief Program) will be completed quick enough to help WaMu—and furthermore may not provide the support they need anyway,'' says Tim Backshall, chief strategist at Credit Derivatives Research.

Elsewhere, a return to normalcy—of sorts.

Barclays [BCS Loading... () ] rehires 10,000 Lehman Brothers [LEHMQ Loading... () ] employees as a series of former Lehman units reopened on Monday under Barclays' aegis.

The Dow losses 161.52, or 1.5 percent, to close at 10854.17. The S&P 500 fallsl 1.6 percent, while the tech-heavy Nasdaq skids 1.2 percent.

What the Experts Were Saying:

"5 Lies About Paulson's Plan": Mad Money's Jim Cramer says there are five misconceptions casting doubt on the bailout plan.

The master traders of CNBC's "Fast Money" offer advice for surviving and profiting through the financial crisis.

Global financials are expected to get a boost Wednesday on news of Warren Buffett's $5 billion investment in Goldman Sachs, says Colin Whitehead, analyst at Fat Prophets.