Fed Cuts Discount Rate, Will Allow Primary Dealers to Borrow --- was ist dort los? alle in die Rettungsboote? - mL

Borrow

By Scott Lanman

March 16 (Bloomberg) -- The Federal Reserve reduced the rate on direct loans to commercial banks by a quarter-point and said it will allow primary dealers to borrow at the rate in exchange for a ``broad range'' of investment-grade collateral.

The central bank, in a statement today in Washington, also said it approved extending the maximum term of discount-window loans to 90 days from 30 days. The Fed approved the financing arrangement announced by JPMorgan Chase & Co. and Bear Stearns Cos.

The Fed lowered the discount rate to 3.25 percent from 3.5 percent, narrowing the spread with the federal funds rate to a quarter point from a half point. Primary dealers will be able to borrow at the rate under a new lending facility, to be in place for at least six months, the Fed said.

The actions are ``designed to bolster market liquidity and promote orderly market functioning,'' the Fed said. ``Liquid, well-functioning markets are essential for the promotion of economic growth.''

To contact the reporter on this story: Scott Lanman in Washington at slanman@bloomberg.net
Last Updated: March 16, 2008 19:15 EDT
http://www.bloomberg.com/apps/news?pid=20601068&sid=aiI66i481amk&refer=economy
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Hallo,
kann mir das einer mal kurz aufbröseln? Hat die FED am Sonntag Abend die Zinsen gesenkt? Was ist da los?
In Asien: Gold up, Eur up, JPY gg USD fester

Gruß
McShorty

Hier noch ne News
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U.S. Fed Statement on Initiatives to Bolster `Liquidity:' Text

March 16 (Bloomberg) -- The following is a reformatted version of a statement the Federal Reserve released today.

``The Federal Reserve on Sunday announced two initiatives designed to bolster market liquidity and promote orderly market functioning. Liquid, well-functioning markets are essential for the promotion of economic growth.

First, the Federal Reserve Board voted unanimously to authorize the Federal Reserve Bank of New York to create a lending facility to improve the ability of primary dealers to provide financing to participants in securitization markets. This facility will be available for business on Monday, March 17. It will be in place for at least six months and may be extended as conditions warrant. Credit extended to primary dealers under this facility may be collateralized by a broad range of investment-grade debt securities. The interest rate charged on such credit will be the same as the primary credit rate, or discount rate, at the Federal Reserve Bank of New York.

Second, the Federal Reserve Board unanimously approved a request by the Federal Reserve Bank of New York to decrease the primary credit rate from 3-1/2 percent to 3 1/4 percent, effective immediately. This step lowers the spread of the primary credit rate over the Federal Open Market Committee's target federal funds rate to 1/4 percentage point. The Board also approved an increase in the maximum maturity of primary credit loans to 90 days from 30 days.

The Board also approved the financing arrangement announced by JPMorgan Chase & Co. and The Bear Stearns Companies Inc.''
Last Updated: March 16, 2008 19:14 EDT

http://www.bloomberg.com/apps/news?pid=20601068&sid=aUJpMnL7Beu8&refer=economy

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Danke an Elli, Chef, HM und igelei für das wunderbare Forum hier!
Seid wachsam auf diesem Narrenschiff!