Friday, November 2, 2007

UPDATE-Fed Pours Liquidity Into System

Yesterday we posted the New York Fed's 14 day open market operations at 8:51 EDT. I got preoccupied and didn't see the 7 and 1 day repo's. WOW.

From the Wall Street Journal Online:

Fed Injects $41 Billion in Liquidity
The Federal Reserve pumped a total $41 billion to the U.S. financial system in three separate operations Thursday, amounting to the largest injection of funds since the liquidity crisis took hold this summer.

...The New York Federal Reserve's Web site announced a one-day repurchase of $12 billion, alongside a $21 billion seven-day, and a $8 billion 14-day operation. The total exceeds the $38 billion injection back in August that marked the largest contribution to the market in a single day since the World Trade Center attacks in 2001.

...It slightly undershoots the $42.5 billion in funds maturing Thursday. But the size of the operation suggests that the Fed isn't yet prepared to allow its additional liquidity to drain from a financial system still in recovery mode.

...Thursday morning, they submitted collateral totaling $263 billion, of which only 16% were accepted.
Here's The NY Fed's site.
The September 19, 2001 open-market operations totaled $50.35 Billion.