(an email exchange)
On Fri, May 2, 2008 at 9:44 AM, Jeff wrote:
The Fed announced today that, starting May 5th, it was expanding its cash-loan biweekly auctions for banks (Term Auction Facility or TAF) by 50% to $75 billion each auction. This was the third increase in the four months the program has existed. The Fed also expanded the collateral accepted for the US Treasuries to include other AAA private-label mbs securities,
good, it should be open to any member bank assets- they are all occ legal anyway
in addition to the residential and commercial mbs and agency CMOs that it already accepts. It also increased its currency swap facility with the ECB to $50 billion and with the Swiss National Bank to $12 billion and extended the terms through January 2009.ÂÂÂ
interesting that the ECB needs more dollars. if there is going to be a systemic failure it’s in the eurozone.