US spends $800 billion more in fixing credit crisis


US spends $800 billion more in fixing credit crisis
US authorites are to spend an additional $800 billion (£523 million) shoring up the nation's finances.

The Federal Reserve is to spend $500 million buying mortgage-backed securities from Fannie Mae, Freddie Mac, and Ginnie Mae.

Up to $100 billion will also be spent purchasing direct obligations linked to the state-backed firms, which guarantee mortgage lending in the US.

Furthermore $200 billion has been made available from the Fed so the Federal Reserve Bank of New York can lend to lenders offering loans to consumers and small business.

It is hoped the move will encourage lenders to start offering loans to small business and consumers – and ease the stateside main street credit crunch.

The scheme will see lenders with recently issued AAA-rate asset-backed securities offer the cash.

This cash is in addition to the highly controversial $800 billion bail-out plan that had the world on the edge of its seat as US lawmakers rejected and then accepted the deal.

Fannie Mae and Freddie Mac were rescued by the US government in September after losses racked up from subprime mortgages put them at risk of collapse.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure