Daily Real Estate News | March 17, 2008Fed Slashes Rates
In an effort to boost market liquidity, the Federal Reserve lowered the discount rate to 3.25 percent from 3.5 percent and launched a new lending program through which money will be moved from securities dealers to the securitization markets.
The effort - the latest attempt to stabilize prices of bonds backed by residential loans as delinquencies continue to escalate and home prices tumble - will provide financing for JPMorgan Chase & Co.'s acquisition of Bear Stearns Cos. for approximately $270 million, or about $2 per share.
Meanwhile, the central bank on Tuesday cut its key short-term interest rate affecting consumers and businesses by three-quarters of a percentage point to 2.25 percent.
Source: Dallas Morning News (03/17/08)
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