Fed Completes Record Banking Injection

The Fed moved to improve bank liquidity today by adding more cash than they have since 9/11/01.

In the wake of more institutional failures, banks were tight-fisted. Borrowing costs soared, and the Fed attempted to curb the problem by adding liquidity. Easier money means lower rates, ideally. Marketwatch.com describes the Fed's cash injection and the environment that triggered them.

In addition, regulators changed loan programs and requirements to make it easier for banks to borrow.