Several of the world’s most influential central banks unveiled a coordinated response to this week’s market turmoil and broader concerns about financial markets.
The U.S. Federal Reserve announced it would make an additional $180 billion available to foreign banks for overnight and longer-term money markets.
The European Central Bank, Bank of Japan, Bank of England, Bank of Canada, and Swiss National Bank made a joint statement that they would work with the U.S. Fed to help make short-term loans available to financial institutions in their countries.
Separately, the Financial Times reports Russia will inject over $19 billion to support its sputtering financial markets, following a dramatic stock slide.
A backgrounder from the Wall Street Journal says the credit crisis, spawned from bad U.S. mortgage-backed debt, has spread into the worst financial crisis since the 1930s, and that there is no clear end in sight.