Central Banks Expand Worlds Biggest Pawn Shop
To further a dearth of market liquidity...
the Fed said would increase the amounts offered in its TAF Term Auction Facility auctions by 50%, to $75 billion from $50 billion.
The ECB, which has held seven auctions of U.S. dollars so far, will extend the amount of cash available at each auction to $25 billion, from $15 billion
and the Swiss National Bank will also boost their auctions of U.S. dollar funds for European banks.
The Fed will also widen the scope of acceptable collateral for Term Securities Lending Facility loans to include AAA-rated asset-backed securities.
(i.e. Subprime Toxic Mortgage Backed Securities.)
Today's actions were taken "in view of the persistent liquidity pressures in some term funding markets."
Last month Stanford University economist John Taylor, wrote:
there is "no empirical evidence" the TAF has reduced the premium that banks charge each other to lend cash for three months.
the Fed said would increase the amounts offered in its TAF Term Auction Facility auctions by 50%, to $75 billion from $50 billion.
The ECB, which has held seven auctions of U.S. dollars so far, will extend the amount of cash available at each auction to $25 billion, from $15 billion
and the Swiss National Bank will also boost their auctions of U.S. dollar funds for European banks.
The Fed will also widen the scope of acceptable collateral for Term Securities Lending Facility loans to include AAA-rated asset-backed securities.
(i.e. Subprime Toxic Mortgage Backed Securities.)
Today's actions were taken "in view of the persistent liquidity pressures in some term funding markets."
Last month Stanford University economist John Taylor, wrote:
there is "no empirical evidence" the TAF has reduced the premium that banks charge each other to lend cash for three months.
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