IMPORTANT FACT: Fed Pumps Further $630 Billion Into Financial System (Update3)

[dogindia]

http://www.bloomberg.com/apps/news?pid=20601087&sid=a9MTZEgukPLY&refer=home

Fed Pumps Further $630 Billion Into Financial System (Update3)
By Scott Lanman and Craig Torres



Sept. 29 (Bloomberg) -- The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.

The Fed increased its existing currency swaps with foreign central banks by $330 billion to $620 billion to make more dollars available worldwide. The Term Auction Facility, the Fed's emergency loan program, will expand by $300 billion to $450 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.

The Fed's expansion of liquidity, the biggest since credit markets seized up last year, came hours before the U.S. House of Representatives rejected a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, causing stocks to plunge and forcing European governments to rescue four banks over the past two days alone.

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[mmonk]

1. This is what I've been calling for.

Sane given no plan.

[dogindia]

2. Wonder if the fed could do all the adjusting...but then the bailout vote

and dialog brought the crisis to public view.