Fed offers $100 billion more to commercial banks

March 28, 2008 9:12:31 AM PDT
The Federal Reserve will auction another $100 billion in April to cash-strapped banks as it continues to combat the effects of a credit crisis. The central bank said Friday it would make $50 billion available at each of two auctions on April 7 and April 21.

Through the end of March, the Fed has provided $260 billion in short-term loans to commercial banks through an innovative auction process. It also has employed Depression-era provisions to provide money to investment banks.

All the moves are designed to cope with a financial crisis that has roiled U.S. and global markets and caused the near-collapse of Bear Stearns, the nation's fifth largest investment bank.