英語角

Fed credit facility to last into next year

Large investment banks will be able to access emergency cash from the Federal Reserve into next year as long as financial market turmoil persists, Ben Bernanke, said recently in a sign of the growing concern among US policymakers that market strains will continue for some time.

The signal from Bernanke is likely to soothe Wall Street, in that it confirms Fed support for investment banks through the credit crisis. In afternoon trading the S&P 500 was up 0.5 per cent.

However, as well as signalling fears that the effects of market turmoil may be felt for longer than hoped, a move to extend the credit facility will raise pressure on Congress to tighten regulation of investment banks.

Speaking in Virginia at a forum on mortgage lending for low-income households, Bernanke said: “We are currently monitoring developments in financial markets closely and considering several options, including extending the duration of our facilities for primary dealers beyond year-end, should the current and exigent circumstances continue to prevail in dealer-funding markets.”

In March, the Fed granted investment banks such as Lehman Brothers and Merrill Lynch access to emergency cash for at least six months in an effort to stabilise the US financial system on the same day it helped rescue Bear Stearns with a $29bn loan.

Previously, access to emergency funding was only allowed for commercial banks such as Citigroup and JP Morgan.

Although the moves helped stabilise credit markets for several months, worries about mortgage debt and the health of financial institutions have flared up again.□

I caught every step

Mr. Brown was reading his evening paper when there came a tremendous banging down the stairs. He jumped up ran to the hall and discovered his schoolboy son sprawled on the floor.

“Did you miss a step?” asked Mr. Brown.

“No, I caught every blessed one!” the boy answered bitterly.□

Sharing the Apples

Harry was given two apples, a small one and a large one, by his Mum. “Share them with your sister.” Mum said.

So Harry gave the small one to his little sister and started touching into the large one.

“Cor!” said his little sister, “If Mum had given them to me Id have given you the large one and had the small one myself.”

“Well,” said Harry, “thats what youve got, so what are you worrying about?”