US$800 billion bid to clear credit lines
26-11-2008
The Federal Reserve has announced plans to pump up to US$800 billion into the financial system in purchases of mortgage- and asset-backed securities. Nearly US$600 billion will be used to buy-up obligations of housing-related government-sponsored enterprises including Fannie Mae and Freddie Mac, starting from next week. The Fed will also launch a program to buy up to US$200 billion in securities - backed by student and auto loans, and credit card debts - in a further effort to unclog frozen credit markets. The US Treasury said it was allocating US$20 billion to the asset-backed securities fund.
