NEW YORK — The New York Federal Reserve announced Monday it was implementing several measures to increase liquidity in the parched credit markets ahead of the year's end.
The New York Fed's moves included increasing the amount of funds that dealers can tap through the bank's open market account securities lending program and making an unusual long agreement to buy back securities to cover the year end.
The changes will allow dealers to tap the New York Fed's System Open Market Account program to borrow up to $750 million per issue _ up from a prior cap of $500 million per issue. The New York Fed carries out monetary policy for the U.S. Federal Reserve.
Someone on CNBC discussing the possibility of a major financial institution going down:
There are certain things that are so bad they almost can't be allowed to happen. There's never been a famine in a Democracy because people just won't let it happen and I think that's what the Fed's for.
hilarious