Washington (AP) The Federal Reserve is extending its emergency borrowing program to wall street firms and is taking other steps to ease a severe credit crunch that has hobbled the national economy.
The Fed announced Wednesday that the program, where investment houses can tap for a quick source of cash, will now be available through Jan. 30. Originally the program, started on March 17, was supposed to last until mid-September.
The Fed says another program, where investment firms can temporarily swap super-safe treasury securities for more risky investments also will continue through Jan. 30. And, it also will let commercial banks, in a separate program, be able to bid on cash loans that last longer for 84 days, besides the 28-day loans now available.