The Crisis - One Year Later

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

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.

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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 says it will receive a $5 billion investment from Warren Buffett's Berkshire Hathaway.

"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.

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Canada's Toronto-Dominion Bank 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 , Citigroup and JPMorgan Chase . HSBC and Wells Fargo 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.

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"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 rehires 10,000 Lehman Brothers 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