"Seeking to reassure banks amid the continuing credit crisis, the Federal Reserve said yesterday that it would provide $8 billion in funds to ease concerns about lending during the holiday season.I may NEVER say this again (it really was not my favorite class--sorry Rich ;) ), but I wish I were teaching Money and Banking right now.
The $8 billion — essentially a low-interest loan to the nation’s banks — will be issued Wednesday and repaid Jan. 10. The 43-day loan period is the longest in three years for this type of year-end injection. While it is not an unusual step for the Fed, the injection usually takes place later in the fourth quarter and involves a smaller amount. In 2005, the last time the Fed issued year-end funds, it issued 28-day repurchase agreements for $5 billion, starting Dec. 8."
Tuesday, November 27, 2007
Fed to Inject $8 Billion to Lubricate Economy - New York Times
Fed to Inject $8 Billion to Lubricate Economy - New York Times: