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Euro Bank Injects $190B to Avoid Crash

ECB's largest-ever emergency cash injection aims to stave off crisis

By Jason Farago, Newser Staff

Posted Aug 10, 2007 5:28 AM CDT

(Newser) – The European Central Bank has released $190 billion in emergency funds in a desperate attempt to restore liquidity to the region's markets. The Financial Times reports that the ECB's emergency injection echoes moves by central banks in Japan, the US and Canada but is unprecedented in scale. The move rattled investors and sent stocks sliding even further.

A worldwide squeeze on liquidity has badly unsettled financial markets; yesterday's decision by BNP Paribas to freeze three of its funds sowed panic in banks across the globe. As the meltdown from subprime loans continues the ECB hopes to restore order to the increasingly volatile lending markets, where tighter credit is leading to a "dash for cash."

A stock trader seen in front of the German Stock Index (DAX) display at the stock exchange in Frankfurt, Germany Thursday, Aug. 9, 2007. The index dropped by more than 100 points during trading on Thursday... (Associated Press)

The European Central Bank in Frankfurt. (Skyscrapercity.com)

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Euro Bank Injects $190B to Avoid Crash

ECB's largest-ever emergency cash injection aims to stave off crisis

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investors • subprime mortgages • stocks • loans • finance • markets • BNP Paribas • European Central Bank • liquidity

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$140B in commercial paper is coming due, and forecast is fuzzy

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Euro Bank Injects $190B to Avoid Crash

ECB's largest-ever emergency cash injection aims to stave off crisis

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OTHER STORIES ON OUR RADAR

Views on the ECB injection

investors • subprime mortgages • stocks • loans • finance • markets • BNP Paribas • European Central Bank • liquidity

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Fed Shaves Half- Point Off Discount Rate

Surprise cut boosts futures trading and Euro markets

Wall Street Watching Fed's High Wire Act

Rate cut expected in unusually tough decision this week

Tightening Credit Markets Squeeze Banks

$140B in commercial paper is coming due, and forecast is fuzzy

SEC: Don't Blame Credit Markets for Firm's Demise

Bankrupt cash management operation comes under federal scrutiny

Plastic May Pose Next Big Threat to Economy

Experts expect credit card trouble to track mortgage woes

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?