Busted: Bankers and The Global Economy

May 29, 2008

More Funding Auctions in June

Filed under: banking, credit, federal reserve, money — Tags: , , , , , — digitaleconomy @ 9:30 pm

The Federal Reserve announced the continuation of its bank funding auctions as it continues to make a fresh batch of short-term cash loans available to still-squeezed bankers as part of an ongoing effort to ease stressed credit markets.

The Fed said it will conduct three auctions in June, with each one making $75 billion available in short-term cash loans, to help banks overcome credit problems so they will keep lending to customers. The magnitude of the problem continues unabated as the Federal Reserve increases the credit available. How much progress that banks are actually making with capital funding to wean themselves from Fed credit is a large question. The banking situation appears to be stagnated as the banking umbilical remains firmly in place. Will the Federal Reserve continue to uphold $75 billion auctions or will bankers see a decrease in funding in the near future?

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