Breaking... Fed, central banks act on credit needs
The U.S. Federal Reserve prepared to pump $75 billion into frozen credit markets following moves by European central banks on Thursday to help lenders who scrambled to meet quarter-end funding needs.
The Fed was ready to exchange billions in low-risk U.S. government bonds for underperforming mortgage investments from primary dealers as part of steps announced this month to help them raise capital and to encourage broader lending.
Banks are clamoring for extra cash to meet capital requirements ahead of Monday's quarterly book closing, reducing their willingness to lend and adding to strains in crisis-hit markets... biz.yahoo.com
