Los Angeles Times (03/21/08)
Under a Federal Reserve program announced on March 11 and designed to help Wall Street deal with the ongoing credit crisis, the central bank is allowing securities firms to pledge more risky mortgage-related assets than initially disclosed. The auction program entails the Fed lending major securities firms Treasury securities and accepting highly rated mortgage holdings as collateral. On March 20, though, Fed officials added that collateral now could include securities linked to commercial real-estate loans and some issues of collateralized mortgage obligations. The amount of the first auction, set for next March 27, has been set at $75 billion.
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