Fed injects even more money to help ease credit crisis



The US Federal Reserve announced that it would lend primary dealers in the bond market up to $200bn (€130bn, 100bn) in Treasury securities for a month at a time and accept ordinary AAA-rated mortgage-backed securities as collateral in return. It was followed by similar moves, although in smaller scale, from other central Banks.

Analysts said it took the US central bank a step closer to the nuclear option of buying mortgage-backed securities in its own right.

http://www.ft.com/cms/s/0/801479f4-ef70-11dc-8a17-0000779fd2ac.html

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