Dow's 100-point slide Friday stemmed in part from fears that banks would be nationalized.
They tried to reassure Congress and regain the trust of an angry public on Wednesday.
The Obama administration hopes federal dollars will serve as the catalyst to generate $1.5 trillion in private-sector investments.
The new rules, which limit top executive pay at bailed-out firms to $500,000, may mark a turning point in pay practices.
Customers tired of the impersonal feel of larger banks may find a better relationship from small rivals.
The Obama administration is considering it as a way to avoid outright nationalization of the banking industry.
Losses on mortgage debt, followed by recession woes such as corporate bankruptcies and rising defaults on credit cards, delivered a one-two punch.