US federal government: takes joint action

The European Central Bank, the Bank of Japan and The Federal Reserve joined with their counterparts from around the globe to ensure that the crisis doesn’t get any worse they have been pumping billions of dollars into the financial system.

The US government has given authorization for other central banks to auction $180 billion in dollar funds to financial institutions. On the federals website it shows a statement saying that the Swiss National Bank, Bank of Canada and the Bank of England are all participating.

The banks said the move is “designed to address the continued elevated pressures in U.S. dollar short-term funding markets. The central banks continue to work together closely and will take appropriate steps to address the ongoing pressures.”

Following the Lehman Brothers Holdings Inc collapse, central bankers have found it hard to restore confidence in the financial markets this week, as banks feared that more banks would follow suit with Lehman they have kept hold of their money.

Source: bloomberg