Published on Tue, Nov 25, 2008 at 20:08 | Source : CNBC-TV18
Updated at Wed, Nov 26, 2008 at 11:38
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US Fed unveils new $800-bn bailout package
In another massive life-support intervention for the US financial system announced, a USD 600 billion program to buy mortgage-related debt and securities has been announced. It has also unveiled a USD 200 billion facility to buy consumer debt securities.
In another massive life-support intervention for the US financial system, the US Federal Reserve announced a USD 600-billion programme to buy mortgage-related debt and securities. It also unveiled a USD 200-billion facility to buy consumer-debt securities.
The US central bank said it would buy up to USD 100 billion in debt issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, the government-sponsored mortgage finance enterprises.
The central bank also launched a USD 200-billion facility to back consumer loans, including student, auto, and credit card loans and loans backed by the federal Small Business Administration.
Specifically, the US Treasury Department announced it will allocate USD 20 billion to back a lending facility for the consumer "asset-backed securities" market established by the Federal Reserve Bank of New York. That market provides liquidity to financial institutions that provide small business loans and consumer lending such as auto loans, student loans, and credit cards.
In another massive life-support intervention for the US financial system, the US Federal Reserve announced a USD 600-billion programme to buy mortgage-related debt and securities. It also unveiled a USD 200-billion facility to buy consumer-debt securities.
