Fed Puts Up Billions for Auction
The Federal Reserve's move to infuse money into the banking system is getting mixed reviews. The plan aims to ease anxiety among banks. They're afraid to lend to each other because so many are taking hits from the U.S. mortgage meltdown. Economists say the Fed's strategy could prevent a credit crunch from causing a recession. But it won't ease all the pain caused by the troubles in the U.S. housing market. Three more banks just came out with warnings about their profits: Bank of America, Wachovia, and PNC Bank.
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