Fed auctions $75 billion to banks to ease credit stresses
Battling to relieve stressed credit markets, the Federal Reserve said Tuesday it has provided a total of $435 billion in short-term loans to squeezed banks since December to help them overcome credit problems.
The central bank announced the results of its most recent auction — $75 billion in short-term loans — the 11th such auction since the program started in December.
It's part of an ongoing effort by the Fed to help ease the credit crunch, which erupted last August, intensified in December and January and took another turn for the worst in March.
The housing, credit and financial crises have weakened the economy and threaten to push it into recession.
In the latest auction, commercial banks paid an interest rate of 2.220 percent for the loans.
There were 71 bidders for the slice of the $75 billion in 28-day loans. The Fed received bids for $96.62 billion worth of the loans. The auction was conducted on Monday with the results released Tuesday.
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Member Comments
Posted By: josephjsalas @ 03/21/2008 3:51:42 PM
Comment: "Quit beating arround the BUSH! Everybody knows the little people base their decisions upon the DJI
ticker. Everyone should know by now that the DJI is based upon Banking and Oil! So between the
Iraq war and the Fed supplying the crutch needed for the big banks, eveyone should know that
Wall Street and the Dollar are both backed and produced by green ink and liquid crystal!
Posted By: tired and old @ 03/17/2008 1:25:03 PM
Comment: It is a real joy to hear that the government wants to bring calm to the stock market ?
I only wish that I had enought money to purchase a stock certificate. Unfortunately my money seems to be in short supply. I think it is important to have food to eat, taxes to pay, propane to buy, fuel to purchase.
Where has the government been as my expenses continued to grow ?
In the Bush years food has tripled, gasoline has tripled, and propane tripled.
President Bush thank you for caring about that which I can't afford. I hope you have lots of fun counting your millions after retiring from government; just, like Bill Clinton.
Posted By: C. MacLean @ 03/17/2008 11:33:47 AM
Comment: Well, well, well. I thought the republicans were the party of less government interference, but amazingly, when it comes down to money, they somehow manage to take care of their own.
And at this point, they had no choice - the alternative, to allow Bear Stearns to collapse, was unthinkable.
But by all means, let's continue to maintain tax cuts for the rich while we make paupers of the middle class. By all means, let's continue to insist we are a society based on capitalism and consumerism but send our jobs overseas. (Tough to tax the middle class if they aren't employed, huh?)
And by all means, let's continue to pour more money into the Middle East and the military, draining our coffers at home, so we can continue to prop up Big Oil - the people who brought you record profits even as gas climbs to $4/gallon and beyond.
George Bush says, "we have taken strong, decisive action." No, George. Strong decisive action would have been avoiding going to war against an oil producing nation. Strong decisive action would have been to figure out how to balance the budget. Strong decisive action would have been to show some backbone and leadership.
January 21, 2009 can't come soon enough.