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Fed Pours $200B Into Global Credit Relief Push  

Posted Mar 11, 08 10:15 AM CDT in Business    Most Covered

(newser) – The Fed will inject huge quantities of cash into financial markets as part of a coordinated global attack on the credit crisis, Ben Bernanke announced today. The central bank will loan out another $200 billion, this time on a 28-day basis rather than overnight, the AP reports. The effort will coordinate with the European Central Bank and the central banks of Canada, England, and Switzerland.

The Fed said it acted "to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally." The new loans are a new tool, a Term Securities Lending Facility, and will be available by auction once a week starting March 27. The Fed has also bolstered the dollars that can flow to the ECB through “swap lines.”

Source Associated Press

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Fed Pours $200B Into Global Credit Relief Push
Specialist Evan Soloman, left, and trader Jon Corpina interact on the floor of the New York Stock Exchange, Friday, March 7, 2008. Stocks bounced around Friday after the government's much-anticipated...   (Associated Press)
Fed Pours $200B Into Global Credit Relief Push
Trader Richard Tandy Jr., center, works on the floor of the New York Stock Exchange, Friday, March 7, 2008. Stocks bounced around Friday after the government's much-anticipated February employment report...   (Associated Press)
Fed Pours $200B Into Global Credit Relief Push
Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in this Feb. 27, 2008 file photo. (AP Photo/J. Scott Applewhite)   (Associated Press)
Fed Pours $200B Into Global Credit Relief Push
Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in this Feb. 27, 2008 file photo. (AP Photo/J. Scott Applewhite)   (Associated Press)
Fed Pours $200B Into Global Credit Relief Push
Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in this Feb. 27, 2008 file photo. (AP Photo/J. Scott Applewhite)   (Associated Press)
Fed Pours $200B Into Global Credit Relief Push
A Euro sculpture is seen in the autumnal sun in front of the European Central Bank ECB building, rear, in Frankfurt, Germany, in this Sept. 24, 2007 file picture. The European Central Bank, along with...   (Associated Press)
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US economy  • Federal Reserve  • credit crisis  • Ben Bernanke  • interest rate  • liquidity  • Bank of England  • European Central Bank  • Royal Bank of Canada


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