Investors turned skeptical about the government's latest bank bailout plan.

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The Dow Jones closed 381 points down as financial stocks lead the market lower. Wall Street is concerned about the government's ability to restore the health of the banking industry.

Treasury Secretary Timothy Geithner announced a plan that the government says could mobilize well over $1 trillion in public and private support to get the frozen credit markets functioning again. It includes a government-private sector partnership to help remove banks' soured assets from their books.

Investors are worried the steps won't be sufficient.

"Without credit, economies cannot grow, and right now, critical parts of our financial system are damaged," Geithner said.

Geithner said that "guided by the principles of transparency and accountability," the new administration will wage an aggressive two-front battle against the worst financial crisis in seven decades, while the Federal Reserve expands a key lending program to up to $1 trillion.

He said the new plan would greatly expand the effort to unclog credit markets that provide loans to consumers and businesses, increasing funding from $20 billion to about $100 billion.

That would be enough to support an additional $1 trillion in lending support through a Federal Reserve program that was announced in November but is not yet operational.

The program is designed to boost resources for consumer credit and small business loans.

"The financial system is central to this process, transforming the earnings and savings of American workers into the loans that finance a first home, a new car or a college education, the credit necessary to build a company around a new idea," Geithner said.

The program also would provide aid to the commercial real estate sector and create a partnership between the government and the private sector to buy up bad assets that are weighing down bank balance sheets.

Geithner said the plan also will impose tough new standards on future payments to banks.

"We want their balance sheets cleaner and stronger. And we are going to help this process by providing a new program of capital support for those institutions which need it," Geithner said.

The banks would have to show they are putting money back into circulation and prove they are sound enough to justify further government support.

President Barack Obama called the reworked bailout a template for "restoring market confidence."