New Nasdaq index to track bailed-out companies

NEW YORK (Reuters) - Nasdaq OMX is launching a new index to track the performance of companies that receive funds under U.S. government bailout efforts.

The index, comprising companies that have received at least $1 billion from the Troubled Asset Relief Program (TARP) or other government aid plans, is called the Nasdaq OMX Government Relief Index.

Late last year, as the financial crisis wiped out banks such as Lehman Brothers Holding Inc and forced the fire sale of Wachovia and Merrill Lynch, the government launched a $700 billion TARP to strengthen banks hammered by mounting losses.

The program was later extended to non-banking financial institutions and the cash-starved automakers.

More than 100 companies have applied to participate in the taxpayer-funded government plan, which exchanges a cash injection for preferred shares and warrants.

The new Nasdaq index is to be calculated in real time across the combined exchanges. Its calculation began with a value of 1000.00 on January 5, Nasdaq OMX said.

(Reporting by Juan Lagorio, editing by John Wallace)