Feds consider bold debt purchase plan
Advertisement
Text size: small | medium | large
AP
Published: October 7, 2008
The government is considering a bold plan to buy massive amounts of unsecured short-term debts in a dramatic effort to break through a credit clog that is threatening the economy.
The Federal Reserve is working with the Treasury Department on the plan to buy “commercial paper.” That’s a short-term financing mechanism that many companies rely on to finance their day-to-day operations, such as purchasing supplies or making payrolls. That’s according to a person with knowledge of the plan. The person spoke on condition of anonymity because the plan is still being put together.
The market for this crucial financing, which relies on investors rather than banks, has virtually dried up.
Post a Comment
The commenting period has ended or commenting has been deactivated for this article.
Can't find what you're looking for? Try our quick search:
