Fed allows emergency cash for US investment banks on 100 Mortgages

Many of the large U.S. investment banks who are having trouble as the financial strain kicks in will be pleased to know that the Federal Reserve will allow them access to emergency cash into next year, if this current turmoil persists.

Ben Bernanke had made this decision on Tuesday, which does hint at the Fed’s growing concern over policymakers who face a tough financial strain, which looks set to continue for some time to come.

Recently, access to emergency funds like this was only available for commercial banks such as JPMorgan and Citigroup, so it does show that the Fed is there to help after all, let us hope that it is not too late for some of them.

It is thought that this move from Mr. Bernanke will help to ease the worries of Wall Street, showing that the Federal Reserve are there to help investment banks who are finding things hard in this credit crisis.

Things did not look as bad for U.S. stocks on Tuesday; we reported yesterday that the dollar picked up against the Euro and that a barrel of crude oil had seen its sharpest fall in months.

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