Money | 10/07/2008 8:50 am
Fed to Give Banks More Cash

The Federal Reserve is working to fund a wide range of U.S. businesses facing major cash shortages, according to the Associated Press.
It said it would funnel up to $900 billion into the U.S. banking system. Other countries made similar moves over the weekend so banks would lend to each other and to customers and keep credit flowing. Stock markets in Asia and Europe also have been taking a beating.
Fed Chairman Ben Bernanke may signal his next move when he speaks Tuesday afternoon on the economic outlook and developments in financial markets. President Bush also is set to talk Tuesday about the government’s $700 billion bailout.
On Monday, the Dow Jones industrial average in the U.S. closed at a four-year low after dipping below 10,000 points for the first time since October, 2004.
A meeting is scheduled in Washington later this week between officials of the International Monetary Fund and World Bank to coordinate global action. The Bush administration’s $700-billion bailout package offers help to foreign banks, but it hasn’t done much to reassure investors, particularly in Europe.
"The big gorilla is really liquidity," Edward Liebert, treasurer of Rohm & Haas and chairman of the National Association of Corporate Treasurers, 100 of whose members discussed the crisis last week, told the Post.























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