Federal Bank’s steps to deal with the credit crisis
2008-03-17 14:18:37 (GMT) (Caymanmama.com - Government News)Washington (A P): CNN has reported that after JP Morgan Chase & Co. agreed to purchase Bear Stearns for $236.2 million, the Federal Reserve Bank has taken action on Sunday evening for providing money to the financially troubled investment houses of Wall Street, an effective effort to prevent the widespread credit crisis from dropping the economy of the US.
The central bank has approved a slash in the lending rates to the financial institutions from 3.50% to 3.25%, and has created a lending facility for the big investment institutions for securing short-term loans. This facility plans to give short-term cash regularly to the investment houses, if they need. This new facility will start on the Wall Street from Monday. “These steps will provide financial institutions with greater assurance of access to funds,” said Ben Bernanke, Federal Reserve Chairman to the reporters during a small conference call held on Sunday evening.
Henry Paulson, the Treasury Secretary, was pleased by the developments of Sunday. He said, “Last Friday, I said that market participants are addressing challenges and I am pleased with recent developments. I appreciate the additional actions taken this evening by the Federal Reserve to enhance the stability, liquidity and orderliness of our markets.” ”
We appreciate the actions taken by the Federal Reserve this evening,” said Dana Perino, the press secretary of the White House.
The discount rate cuts announced on Sunday are applicable only to financial institutions, and not to the individual borrowers, as a step to deal with the deteriorating credit situation that has disturbed the Wall Street. “It seems as if Bernanke & Co. are pulling out all the stops to avoid a serious financial market meltdown,” said Richard Yamarone on Sunday eveningl, an economist at the Argus Research.
CaymanMama.com - Press Release Distribution Service
Comments
Articles
- Been in a motorcycle accident? Vehicle and Motorcycle accident lawyer educates
- Pakistani youth deprived of recreational facilities
- How to Identify a Brain Injury
- Bluetooth technology: Revolutionized
- Color card printing best for business promotion and personal use
- What is Depression?
- Brochure Templates made easy with PrintPelican.com
- Flyers as best marketing tool for business enterprise
- Who uses an RSS Feed?
- A guide to personal injury claims
