WASHINGTON, Sept 11 (AP): The Federal Reserve has auctioned another $25 billion in loans to squeezed banks to help them overcome credit problems.
The central bank Wednesday released the results of its most recent auction. It's part of an ongoing programme started in December that seeks to ease financial turmoil and credit stresses. Those programmes - along with the depressed housing market - have shaken the economy, forcing companies and people to clamp down.
In the latest auction, commercial banks paid an interest rate of 2.530 per cent for the 28-day loans. There were 53 bidders. The Fed received bids for $46.24 billion worth of the loans.
On Tuesday, the Fed auctioned $25 billion worth of 84-days loans to banks.
The Fed in mid-December announced it was creating an auction program that would give banks a new way to get short-term loans from the central bank and help them over the credit hump. In late July, the Fed expanded the program, making the longer 84-day loans available, besides the existing 28-day loans.
Fed Reserve auctions another $25b in loans to banks
FE Team | Published: September 12, 2008 00:00:00 | Updated: February 01, 2018 00:00:00
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