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Fed Takes New Steps on Credit Crisis
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The Federal Reverse is taking bigger steps to lower the nations credit crisis, including increasing the amount of loans it plans to make available to banks this month to $100 billion. The Federal Reverse announced Friday that it will bring up the size of auctions planned for March 10 and March 24 to $50 billion each. The auctions serve as short-term loans to get banks to the cash they need to keep lending to their customers. The Fed, in a statement it planned to continue the auctions for at least six months, and would move to even larger auctions amounts if needed. In a second step, the Fed said it will make $100 billion available to abroad range of financial players through a series of separate transactions starting on Friday. The Fed has been working on bringing up billions of dollars into the banking system to aid an economy rocked by the subprime mortgage and the severe tightening of credit. The central bank started in new type of auction in December to provide short-term loans to cash-strapped bank in hopes of keeping them leading. So far the Fed has made availed a total of $160 billion in short-term loan to banks through six auctions.

March 28, 2008 | 12:00 PM Comments  0 comments

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