ECB, Fed, Others Pump Billions Into Money Markets
FRANKFURT, Germany — Major central banks around the world are working together Thursday to try to stave off a growing global financial crisis.
Europe’s major central banks have joined their counterparts in Japan, the U.S. and Canada to inject as much as 180 billion dollars into global money markets.
Credit markets have tightened since Monday after the weekend collapse of investment house Lehman Brothers. Central banks already provided billions Monday and Tuesday in hopes of turning the tide and to keep fearful banks from hoarding cash.
One analyst says the move was done in part to help banks that may not have direct access to the Federal Reserve.
The ECB, which oversees the 15-nation euro zone, says that “the central banks continue to work together closely and will take appropriate steps to address the ongoing pressures.”