Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Central Banks Scramble to Feed Cash Into Markets

Biz slows as bailout talks stall

By Rob Quinn,  Newser Staff

Posted Sep 26, 2008 7:00 AM CDT

(Newser) – The world's central banks are frantically spraying money into the economy to prevent it from seizing up as the US bailout package stalls and confidence plummets, Reuters reports. The holdup in Washington has made edgy commercial banks even more inclined to hoard cash and not lend to each other—leaving central banks with little choice but to step in.

The US Federal Reserve, the Bank of England, European Central Bank and Swiss National Bank are all involved, the BBC reports. The benchmark LIBOR interbank rate has leaped 30 points—its steepest rise since 1999.
City workers walk across London Bridge toward the financial center of London. European central banks have pumped billions more in short-term credit into the financial system.
City workers walk across London Bridge toward the financial center of London. European central banks have pumped billions more in short-term credit into the financial system.   (AP Photo/Sang Tan)
A trader looks at screens as he works in a financial office in Paris.
A trader looks at screens as he works in a financial office in Paris.   (AP Photo/Remy de la Mauviniere)
The Bank of England is seen in the City of London, Monday, April 21, 2008.
The Bank of England is seen in the City of London, Monday, April 21, 2008.   (AP Photo)
« Prev« Prev | Next »Next » Slideshow

The market is just frozen at the moment. We are at such a point of absent liquidity that prices are beginning to fail in their usefulness as a signal. This in itself is disturbing. - Claudio Piron, a strategist at JPMorgan Chase Bank in Singapore

« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
COMMENTS
Be the first to comment on this story.

Banks are paranoid, with reason
Telegraph (UK)

Interbank lending grinds to a halt
Bloomberg

World • Money

 
Federal Reserve • financial markets • central bank • European Central Bank • liquidity • credit crisis • Bank of England • Libor • financial crisis

 
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   BuzzFeed   |   Cracked   |   World History Project   |   POPSUGAR Tech   |   Business Insider   |   HuffPost Entertainment   |   NewsOne