WASHINGTON (Thomson Financial) - The Federal Reserve is expanding the size
of its Term Auction Facility (TAF) auctions and the size of its swap agreements
with the European Central Bank (ECB) and Swiss National Bank (SNB) in a
coordinated expansion of their liquidity measures because of "persistent
liquidity pressures in some term funding markets," it said this morning.
The TAF auctions will increase $75 bln from $50 bln, beginning with the May
5 auction.
The currency swap agreement with the ECB will expand to $50 bln from $30 bln
and with the the SNB to $12 bln from $6 bln. Those agreements are extended
through January 30, 2009.
In addition the Fed will expand the collateral accepted under its Schedule 2
Term Securities Lending Facility to include AAA/Aaa-rated asset-backed
securities beginning May 7.
"The wider pool of collateral should promote improved financing conditions
in a broad range of financial markets," the Fed statement said.
dennis.moore@thomson.com
dem/wash/am
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