Bankruptcy

Fed Programs to Continue

By J. Michael McBride

“The Federal Reserve has extended the life of key programs aimed at busting through credit clogs and restoring stability to financial markets.

The Fed said Tuesday that the programs, originally slated to last through Jan. 30, will be extended through April 30. The Fed said it was taking the action "in light of continuing strains in financial markets."

The Fed's emergency lending facility, which investment firms can tap for a ready source of cash, is covered by the decision. This category was recently broadened to include any loans that were made to the U.S. and London-based broker-dealer subsidiaries of Goldman Sachs, Morgan Stanley (MS) (MS) and Merrill Lynch.

A program that lets financial institutions temporarily swap risky investments, such as shunned mortgage-backed securities, for super-safe Treasury securities also is covered.”

The link to this article:
http://apnews.myway.com//article/20081202/D94QMVQG1.html

Michael

Full post as published by Texas Lawyer Blog on December 02, 2008 (boomark / email).