Federal Reserve Unveils Short-Term Loan Plan

WASHINGTON — The Federal Reserve is providing more details about when it will make billions of dollars in short-term loans available to squeezed banks.

The loans _ part of an effort to ease intensifying credit stresses _ are made available to banks through auctions. The Fed _ in coordination with other countries' central banks engaged in similar efforts _ laid out dates that it will conduct the auctions through the rest of this year.

To help ease credit stresses, the Fed announced Monday it will provide as much as $900 billion in cash loans to banks. Most of the loans are for 28-days and 84-days. Some are shorter _ 13-day and 17-day loans.

Comments

[Rule Of Law]

Just how much time does Bernanke spend on that beard each morning?

[Oakknollfarm]

This is very interesting - when Federal Reserve Governor, Kevin Warsh talks or votes, you can't even see Ron Lauder (his father-in-law) move his lips.

[KarateKid]

I'd feel more comfortable if Warren Buffet was running the business.

[MikeSweeneyBR]

Twenty years ago I worked for Chase Manhattan Bank and as part of the training we spend some time on the short-term credit desk. It is hard to believe how much money goes through, Commercial Paper, Repo and Fed Funds desk everyday, and that was twenty years ago. This is the electricity of Wall Street and the financing of America, and we have to turn the electricity back on.

I believe the Fed needs to take on both sides of these trades as a middleman for now. When we get the electricity back on, then we can focus on the other problems. Right now, they need to focus on the basic infrastructure. Forget the stock market for now. Main Street trades on the Short Term desk.

[munki]

Traditional, fundamental banking...
then and today... what happened?
coming from banking background...
saw the changes...

"the old fashion way"... was the best...

[darthdarcy]

"The Banking Institutions are a greater threat to our Republic than any standing army...!"

Thomas Jefferson...

[Bettysdad]

"I have the Confederate army in front of me, and the bankers behind me. I'm more afraid of the bankers."

Abraham Lincoln

[Rule Of Law]

'The real The Truth of the matter is, as you and I know, that a financial element in the larger centers has owned the Government ever since the days of Andrew Jackson.'

-- A letter written by FDR to Colonel House, November 21st, 1933"

'The UN is but a long--range, international banking apparatus clearly set up for financial and economic profit by a small group of powerful One--World revolutionaries, hungry for profit and power' " 'The depression was the calculated 'shearing' of the public by the World Money powers, triggered by the planned sudden shortage of supply of call money in the New York money market....The One World Government leaders and their ever close bankers have now acquired full control of the money and credit machinery of the U.S. via the creation of the privately owned Federal Reserve Bank.'

-- Curtis Dall, FDR's son--in--law as quoted in his book, My Exploited Father--in--Law"

[MuchMadness]

Is outright nationalization of major banks, with the tax burden that would require, the only answer? It seems that the largest private sector banks are completely unwilling to do anything to act like decent, patriotic Americans. When times are good, the fat cats claim that they deserve the credit for prosperity. When times are bad, the fat cats refuse to sacrifice in any way, and they will accept no blame. Instead, they threaten to bring ruin to our nation. Remind me again why we should have any respect for this kind of nihilistic capitalism.

[leftLibertarian]

I"d like a loan for$30,000,000.00 at -47% interest so I could move to a country that does not have an extradition agreement with the US.

[PatCroft]

This is a page, ahmm oh ahmm script out of any Peter Sellers Movie. We have seen all of this before but not this magnified. Solution - start holding these guys accountable including the president while definitely removing them from their power surge.

[themodernleader]

Unsecured loans for our corrupt banks are akin to pooring cow' milk on the ground. It can never be recovered. But it is only American currency. And exceptional persons have the right to destroy other people's valuables.

[themodernleader]

I never trusted a program that locked in money in the stock market. Years ago I learned as an insider how corrupt the Market was. i refused to join any 401K savings program. I recognized that when the big boys dumped the market, the little saver would be holding the bag. I begged my friends to put their investments in gold or foreign currencies and short term plays. some took my advice and they thank me for my clairvoyance. It was not based upon any abstract theory. It was based upon data and ordinary historical knowledge.
The Bush Bunch discard and deny all information and knowledge that confutes their hidden agenda to benefit themselves and their friends. Such leaders are dangerous.

[NicoleAnon]

Only insiders make lots of money in the stock market but most people don't want to think about that. They could put the money in their savings and spend less money on vacations and cars and they would make more money then relying on the stock market.

And right now the conmen are already working on their next scam and they will steal billions and there will be another taxpayer bailout for it - hedge funds are not regulated, the people who earn billions from them cliam their business is based in the cayman islands so they pay less taxes and they always rely on politicians and financial lobbyists to help them out.

But I'm still surprised at Paulson hiring more people from Goldman Sachs - he doesn't even pretend to be honest anymore. He almost seems to be proud of being immoral as if he is telling all of us "Everyone knows we're dishonest and we don't care. We do anything we want and to prove it to you I'm hiring more GS employees every day.:

[pointyheadprodigy]

I heard that everything is going to be okay. The Federal reserve received today a letter stating that they have won the Nigerian lottery and all we have to do is send a check for around 8 or 900 Billion dollars, to cover their processing fees, and then after that WE WILL ALL BE RICH. George Bush backs the plan.

Thanks unsolicited prize money people

[veggiequeenmo]

BULLSH*T! Forget about the g*dam banks! Give the money to the people working for it - the taxpayers. The banks aren't helping anyone but themselves. if the banking system wasn't so greedy we wouldn't be in this mess. All these people with ARM loans got SCREWED when their rates adjusted - and none of them went down, I'm guessing. I know some went up as much as $600/mth! That's NUTS! And you wonder why people can't pay their mortgages. SCREW the banks. I want a refund of all the money that was STOLEN from my paychecks over the past 32 years. You gov't LOSERS waste it all by bailing out the people with all the money! I didn't agree to a war (or two or three or...). No one asked me about the bailout. As taxpayers and citizens of this country, we're supposed to be reponsible with our money, pay our bills on time, don't over extend our credit, etc. Fine examples we have. Get the gov't house in order before banks, credit cards, and others start knocking on ours looking for money to pay them back. It's a double standard that pisses me off to no end.

[huffnpuffn]

Yee-haw! The Fed is going to save us! It certainly had nothing to do with getting us in this current mess, and no unelected, unaccountable institution is better placed to get us out! Fire up those printing presses! This economy needs more cheap money. Zimbabwe here we come!

[melpol]

The recent release of government funds can only increase the ability to lend but those with a lack of confidence in the future will refuse to borrow. A media campaign might trick potential consumers into believing that things will soon get better resulting in a jump start for the economy. But The public has been frightened by reports of banks going under and a depression looming on the horizon. Ordinary people are now in a panic and are holding onto their money like a shipwrecked sailor holds onto a life raft. It is difficult to cure a person that has been tramutized by the fear of becoming homeless and then forced to stand in a soup line. The economy will remain depressed until consumers regain confidence through time or the help of a good psychiatrist