Monday, October 22, 2007

Barclays and RBS line up Fed for £15bn

From the Telegraph:

Barclays and Royal Bank of Scotland have lined up emergency funds of up to $30bn (£15bn) from the US Federal Reserve to bail out American clients caught up in the global credit crunch.

The Fed's board of governors wrote to both banks 10 days ago, granting them access to funds for customers "in need of short-term liquidity".

The letter to RBS made particular reference to investors holding mortgage-backed securities – which have been at the centre of the sub-prime crisis....MORE