Fed expands funding, to accept more securities |
| MarketWatch - May 2, 2008 |
The Federal Reserve, along with other central banks, said Friday that it was increasing the funding it provides to banks and that, for the first time, it was willing to accept bonds backed by auto loans and credit cards.
"In view of the persistent liquidity pressures in some term funding markets, the European Central Bank, the Federal Reserve and the Swiss National Bank are announcing an expansion of their liquidity measures," the Fed said in a statement.
Three-month London interbank offered rate -- a benchmark for lending between banks -- was 2.78% Thursday, well above the 2% Fed funds rate.
The Federal Reserve announced an increase in the amounts auctioned to eligible depository institutions under its biweekly Term Auction Facility to $75 billion from $50 billion, beginning with the auction on May 5.
Read Full Article from MarketWatch
- Posted: 2008-05-02 08:29:37
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