Fed Pours $200B Into Global Credit Relief Push

Central banks around the world try to ease liquidity problem

By Kevin Spak, Newser Staff

Posted Mar 11, 2008 10:15 AM CDT

(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.”

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)

Federal Reserve Chairman Ben Bernanke testifies on Capitol Hill in this Feb. 27, 2008 file photo. (AP Photo/J. Scott Applewhite) (Associated Press)

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)

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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Fed Pours $200B Into Global Credit Relief Push

Central banks around the world try to ease liquidity problem

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Central Banks Scramble to Feed Cash Into Markets

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Target is record low as Reserve battles recession

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With Fed at 1% and European, Asian banks trimming, no-interest loans not far off, perhaps

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Central banks around the world try to ease liquidity problem

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OTHER STORIES ON OUR RADAR

Ben Bernanke • Federal Reserve • US economy • European Central Bank • interest rate • liquidity • credit crisis • Bank of England • Royal Bank of Canada • Swiss National Bank • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Central Banks Scramble to Feed Cash Into Markets

Biz slows as bailout talks stall

Central Banks Move to Ease Market Strains

Stock futures surge on the news

Fed Cuts Rate to 0%-0.25%

Target is record low as Reserve battles recession

'Race to Zero' Under Way as Central Banks Cut Rates

With Fed at 1% and European, Asian banks trimming, no-interest loans not far off, perhaps

Wrangle Over $700B Bailout Heats Up

Lawmakers seek pay caps, homeowner help, as doubts mount

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Newser By Users

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