Fed Extends Emergency Loan Program for Wall Street

July 30, 2008 6:34:49 AM PDT
The Federal Reserve is extending its emergency borrowing program to Wall Street firms and is taking other steps to ease a severe credit crunch that has hobbled the national economy. The Fed announced Wednesday that the program, where investment houses can tap for a quick source of cash, will now be available through Jan. 30. Originally the program, started on March 17, was supposed to last until mid-September.

The Fed says another program, where investment firms can temporarily swap super-safe Treasury securities for more risky investments also will continue through Jan. 30. And, it also will let commercial banks, in a separate program, be able to bid on cash loans that last longer - for 84 days, besides the 28-day loans now available.