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."