Gothamist
A non-profit newsroom, powered by WNYC.
Gothamist
Listen Live
News
Worldwide Central Banks Pump Cash into Markets
By
Jen Chung
Published Sep 18, 2008
Modified Sep 18, 2008
Share
FacebookTwitterRedditEmail
Never miss a story
Email address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .
By
Jen Chung
Published Sep 18, 2008
Modified Sep 18, 2008
Share
FacebookTwitterRedditEmail
We rely on your support to make local news available to all
Make your contribution now and help Gothamist thrive in 2026. Donate today
Gothamist is funded by sponsors and member donations
Photograph outside Morgan Stanley's Times Square headquarters by Mark Lennihan/AP
Wall Street is poised for a rally as central banks around the world--from the U.S.'s Federal Reserve to the European Central Bank and Bank of Japan (and others)--put more cash into the markets. Per the NY Times:
The Fed said in a statement that it had authorized a $180 billion expansion of its temporary reciprocal currency arrangements, known as swap lines, to allow banks to borrow more dollars in markets at a lower rates...
The Fed also authorized increases in the existing swap lines with the European Central Bank, up to $110 billion from $55 billion, and the Swiss National Bank, up to $27 billion from $15 billion.
New swap facilities were established by the Fed with the Bank of Japan, for $60 billion; the Bank of England, for $40 billion; and the Bank of Canada for $10 billion.
Barclays' chief European economist Julian Callow said, "This is clearly a very significant help and central banks are showing decisive leadership here as risk aversion is hitting the private sector." Asian stocks fell, but European stocks gained upon news of the cash infusion.
Still, the Wall Street Journal, dubbing this "Worst Crisis Since '30s, With No End Yet in Sight," said the crisis "has entered a new, far more serious phase," noting the problem is beyond just subprime mortgage and there's a "growing sense of wariness about the health of trading partners."
Speaking of health, Morgan Stanley--"one of the two last independent U.S.-based investment banks"--is reportedly talking to Wachovia about merging. Morgan Stanley is also looking to raise cash from a Chinese bank. And Washington Mutual will put itself up for auction. The NY Times has an article about how Morgan Stanley and Goldman Sachs stock, in spite of reporting "respectable profits," fell almost 25% and 14% respectively, "underscor[ing] how quickly a sense of fear is spreading through Wall Street."
Tagged
business Central European Bank
economy
federal reserve
goldman sachs
morgan stanley
Wachovia
wall street
washington mutual
Jen Chung
Jen Chung is a former WNYC and Gothamist editor.
Read more
Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
MORE news
Gatorade recall affects drinks sold in New York and New Jersey
More than 122,000 cases are being recalled over undeclared food dyes.
By
Giulia Heyward
Published Oct 5, 2026 at 4:36 p.m. ET
Gov. Hochul declares upstate NY measles outbreak a ‘disaster emergency’
The declaration is driven by rising case counts in rural areas and in neighboring Pennsylvania.
By
Caroline Lewis
News
Gov. Hochul declares upstate NY measles outbreak a ‘disaster emergency’
The declaration is driven by rising case counts in rural areas and in neighboring Pennsylvania.
By
Caroline Lewis
NYPD detective forced to retire after false statements in Brooklyn investigation
By
Charles Lane
Mamdani faces pressure to forge ahead with plan to fix polluting South Bronx market
By
Elizabeth Kim
Dominican man who shot border patrol officer in NYC sentenced to 15 years in prison
By
Samantha Max
Never miss a story
Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.
Sign upEmail address
By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .