Fed to lend out another 750 billion to banks

[Bindare_Dundat]

Getting pissed yet?!!

NEW YORK (CNNMoney.com) -- The Federal Reserve announced Monday that it will increase by hundreds of billions of dollars the money it makes available to the nation's banks.

The central bank said that its so-called term auction facility, which accepts financial instruments such as mortgage-backed securities as collateral, will be doubled immediately to $300 billion. The total amount available to banks will rise to $600 billion under the moves announced Monday.

In addition, the Fed signaled it could increase the amount available through those loans to $900 billion by the end of the year, increasing the amount the Fed will loan through the program by $750 billion above its previous limit.

The moves come in the wake of the passage on Friday of a $700 billion bailout bill that will allow Treasury to buy damaged assets directly from banks and Wall Street firms.

[Bindare_Dundat]

So nice, buddies helping each other.

The Treasury Department moved swiftly Monday to implement the financial rescue package, naming a former Goldman Sachs executive to oversee spending the $700 billion earmarked for the plan and pledging to work with other countries to calm global financial markets.

The administration announced it had tapped Neel Kashkari, 35 - an assistant Treasury secretary for international affairs - to head the Treasury's new Office of Financial Stability on an interim basis.

Kashkari helped draft the legislation as one of Treasury Secretary Paulson's close advisers on the crisis. Kashkari joined the government after working at Goldman Sachs, the firm Paulson headed before joining the Bush administration in 2006.

The President's Working Group on Financial Markets, which includes Paulson and Federal Reserve Chairman Ben Bernanke, said it would move "with substantial force on a number of fronts" to implement the expanded authorities granted to the government when Congress passed the emergency rescue package last Friday.