New Nasdaq index tracks firms bailed out by gov't

Photo: "Heck-of-a-Job ---> An Aussie's note to BUSH / CHENEY." A. Golden, eyewash design, c. 2008

New Nasdaq index tracks firms bailed out by gov't

The Nasdaq OMX Government Relief Index includes companies across multiple industries that have received a direct investment from the government of $1 billion or more.

(AP) - Exchange operator Nasdaq OMX Group Inc. said Thursday it has created a new index to track the performance of companies receiving government aid through its $700 billion financial bailout and other programs.

The Nasdaq OMX Government Relief Index, which is trading under the symbol "QGRI," consists of companies across multiple industries that have received a direct investment from the government of $1 billion or more. It is the first of a series of government relief-based indexes that Nasdaq plans to launch in the coming weeks, the company said.

The index began calculation with a value of 1,000 on Jan. 5.

As part of its $700 billion financial rescue package passed in October, the government pledged to invest $250 billion directly in banks and other financial services firms amid the ongoing credit crisis in an effort to stabilize the financial services sector and spur lending between banks and to consumers and other businesses.

Many banks have been hit hard over the past year-and-a-half by a sharp rise in mortgage defaults and a freezing of credit markets. As some financial firms collapsed in recent months, banks shied away from lending to each other and to customers for fear that losses would mount.

Nasdaq shares dropped $1.94, or 8 percent, to $22.29 in afternoon trading.

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