Fed extends liquidity scheme

In addition to the extended offering, the amount of time banks can borrow will be increased from 28 days to 84 days. The Fed says it recognises that financial markets are still fragile and said it would continue to support banks that needed cash quickly. Originally the liquidity facility, which was launched following the near collapse of Bear Stearns in March, was scheduled to end in September. The Fed has also announced it will make a further $50bn, bringing the total cash put aside to deal with the crisis up to $250bn. If you would like to comment on this story, contact: John Bakie T...