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Tuesday, March 11, 2008

Fed Coming to Banks' Rescue

The Federal Reserve announced a new lending program for banks to help ease the credit crisis. The Term Securities Lending Facility will allow banks to borrow an additional $200 billion for up to 28 days and use AAA mortgage securities as collateral.

In addition, the Fed is expected to cut rates an additional 75 basis points next week at its FOMC meeting.