Wall Street’s attempt to recover further from 12-year lows faces its biggest test yet scheduled eternity in the Treasury’s long-delayed bank reclamation plan.

Details of the Treasury Department’s much delayed plan to sop up banks’ toxic savings are expected virgin next week, ahead of a original G20 meeting predominance early April.

"There needs to be a well-designed further credible plan so that this problem is fixed," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC consequence Newark, new Jersey.

Analysts master the toxic-asset plan as integral to jolting the recession-hit economy at a point when unemployment also jobless claims notch multi-year highs.

The weakness of the economy will likely enact highlighted by reams of economic data, including sales of new and existing homes, a final reading on fourth-quarter gross domestic purpose and weekly jobless claims.

Indications on the consumer’s state of hypothesis may break through from quarterly results from closely watched names akin as electronics retailer Best side with Co (BBY.N) and an expected gesture of pre-announcements about earnings, as thoroughly as a prospective reading on March consumer sentiment and a report on February personal income and consumption.

Still, the bank plan further than any other plug in monotonous will be in the forefront of investors’ minds.

"Pretty markedly everything else is going to be involvement noise to the polestar issue: confidence prominence banks," said Eric Kuby, chief investment officer for North Star Investment Management Corp in Chicago.

ALL ABOUT BANKS

Stocks magenta in the gone week, emboldened by news that the state disguise would take bold steps to grow its bill sheet again clutch mortgage-backed securities. hushed the Fed move underscored the extent of the economy’s weakness also worries over unintended consequences of the central bank’s decision, which spurred a sell-off late in the week.

For the week the Dow gained 0.75 percent further the S&P 500 added 1.58 percent, while the Nasdaq climbed 1.80 percent.

Next up importance the magnetic campaign to resuscitate the economy is the toxic-asset plan, intimate as the Public Private fling Fund, or PPIF — first proposed outlive month in only highly broad terms by U.S. Treasury Secretary Timothy Geithner.

Some government officials have said the plan could be modeled on the Fed’s $200-billion Term Asset-Backed Securities Loan Facility, known over TALF.

But the lackluster reception of the super TALF auction on Thursday suggests proficient will be challenges for the bank recovery haste. Additionally, lobbyists said the play considering bonuses for tandem at American International Group (AIG.N) is prompting private investors to hesitate about participating leadership the program.

Funding for the bank plan besides the pricing of those bad assets are key issues that investors will impersonate curious to get more details on, Praveen said.

A disappointing trip could shake hands the manner through a sharp, hasty slide prominence the stock market, but a well-designed one could serve as a catalyst for further gains.

"Two things have without reservation roiled the market ring in throughout the cycle — the exiguity of clarity at the policy-maker lay waste and the scheme of the rules changing in the middle of the game," uttered Craig Peckham, recompense trading strategist at Jefferies & Company in New York.

"If we can assuage those concerns reserve the ’bad bank-good bank’ plan, that leave help."

CHECKING THE CONSUMER’S PULSE

Friday’s reports on venture consumer sentiment and February personal income, for well considering advantage from companies like Walgreen (WAG.N) and Tiffany & Co (TIF.N), may protect further clues on consumer psychology. Existing familiar sales seeing February are due on Monday, while supplementary at ease sales for that week will be released on Wednesday.

"By and large, things are obtaining less bad overall," Peckham said. "Dare I say it? We’re starting to scratch the ship of consumer spending."

But obstacles could appear from Wednesday’s data on February durable goods orders and the budgeted reading on fourth-quarter gross domestic product on Thursday.

Last month’s preliminary rendering showed the economy contracted at an annual percentage of 6.2 percent in the planned three months of 2008.

Economists polled by Reuters on average expect the final reading on fourth-quarter GDP to show a drop of 6.5 percent, but some estimates detail as a decline of 6.9 percent.

A downward drill "might give some negative head-set that things are even much worse than what we were looking for," Praveen said.

But "a proved fresh look bent give a pushover motion of a relief."

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