Meanwhile, the U.S. Federal Reserve said it was adding $2 billion in liquidity by way of a one-day repurchase of Treasuries and other securities.
“The Fed is buying securities from the banks in cash, taking them off the banks’ hands,” said Paul Mendelsohn, chief investment officer with Windham Financial. “It looks like $400 billion has been put into banks worldwide. That’s a lot of money. It’s hard to imagine what this market would be like without these injections. It would be an ugly picture.”
