New program opens floodgates for short-term funds
(NEWSER) - US banks, struggling with liquidity and hesitant to lend to each other in the wake of the subprime crisis, have hit up the Fed for nearly $50 billion, the Financial Times reports. The loans, issued under a 2-month-old program that, one analyst says, lets them "borrow money against all sort of dodgy collateral,” are fueling fears that the banking crisis is deeper than previously believed. More»
