Central banks make $250bn move to ease the credit crisisJoint action by US, UK, Europe and Canada; Dow Jones surges on news
By Stephen Foley in New York
Wednesday, 12 March 2008
Central banks around the world made a second co-ordinated attempt to ease the credit crisis, three months after their first efforts failed to kickstart lending across the financial system.
After days of gathering fears that falling mortgage bond prices could trigger a wave of forced selling by highly indebted hedge funds and other investors, the Federal Reserve said that it would lead a global effort to inject around $250bn (£125bn) of replacement securities into the system.