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|Subject: 1 of the most perilous trading environments||Date: 9/14/2008 9:36 PM|
|Author: doubtit||Number: 251863 of 457406|
Fed Plans Expanded Lending Facilities
By DENNIS K. BERMAN, JON HILSENRATH and DEBORAH SOLOMON
September 14, 2008 9:19 p.m.
The Federal Reserve is expected to expand its lending facilities in the wake of the likely demise of Lehman Brothers, taking a wider array of securities, including equities, as collateral for its loans, say people familiar with the matter.
The moves, which potentially represent another landmark step in the Fed's efforts to address the deepening credit crisis, are expected to be temporary. They are meant to calm markets as they head into one of the most perilous trading environments in decades with Lehman's massive market positions on the verge of being unwound.
The Fed has already dramatically expanded its lending facilities in the past few months. Most notably, after the collapse of Bear Stearns in March, it said it would make short-term emergency loans to investment banks under a lending facility called the Primary Dealer Credit Facility.
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