Wednesday, January 26, 2011

U.S. Treasury Federal Reserve announced an emergency capital injection.

U.S. Federal Ministry of Finance should (Fed) request, announced the launch of a temporary "Supplementary Financing Program", shot to save frequently troubled financial institutions help Fed to impose its complement "ammunition" to ease the financial market liquidity .pressure. .<P> (Http://finance.) United States Treasury Department said, in addition to the U.S. Treasury has been borrowing scheme, the "Supplementary Financing Program" will constitute a series of short-term U.S. Treasury bonds, which will provide active use of Fed .funds. .</ P> <P> the U.S. Treasury Department said that in the "Supplementary Financing Program", the auction announcement and participate in the auction in accordance with the provisions of the existing Ministry of Finance to manage. .Ministry of Finance will advance notice as possible, circular on "Supplementary Financing Program" bond auction time, size and duration of the situation. .</ P> <P> data show that the acquisition of Bear Stearns in the JP Morgan deal, Bear Stearns, the Fed assumed value of 29 billion U.S. dollars of mortgage-related assets, and provided loans to support JP Morgan Chase. .In addition, in order to protect Fannie Mae, Freddie Mac, and held 5.3 trillion guarantee mortgages, the Fed will be resumed by the two institutions of state. .The Fed also agreed on the open market purchase of variable amounts of Fannie Mae and Freddie Mac guaranteed or held mortgage-backed securities, and, this month the Fed has bought 50 billion of its security or hold securities. .</ P> <P> latest development, the Fed announced the evening of 16 U.S. time, has authorized the Federal Reserve Bank of New York's caught the edge of bankruptcy of AIG to provide 85 billion U.S. dollars emergency loan. .</ P> <P> frequently shot in the Fed funds stretched, is an indisputable fact. .U.S. Treasury should be fixed from time to time, it seems also reasonable, but some analysts that it is difficult to dispel market concerns. .</ P> <P> Earlier Wednesday, the Federal Deposit Insurance Corporation chairman has just said that the U.S. Congress should formulate relevant laws to ensure that there are problems other non-bank financial institutions are properly ordered treatment. .He is in the very period that the United States, Fed and Treasury are doing what they feel should be doing, but he is worried that this approach is only taken in exceptional circumstances, special means. .He said the Government should refer to the FDIC's management approach to develop a process. .</ P> <P> In fact, this is not the only worry the market. .As early as the Fed bail Bear Stearns, "Fannie and Freddie," when the voice is a challenge. .The reason is very simple questions: First, such a move undermined the traditional regulation of U.S. financial liberalization; secondly, why the taxpayer's money without the consent of the Congress, they curve relief due to "greed" and troubled financial institutions. .</ P> <P> support the Fed's answer is an unusual situation to be shot. .</ P>.

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