Stocks tumble after Fed moves

March 17, 2008

The measures include lowering its discount rate and extending credit to securities firms for the first time since the Great Depression. The extraordinary action is aimed at ensuring financial organisations have access to liquid funds as the credit crisis roils markets. The Fed's measures came after cash reserves at the United States' fifth largest investment bank Bear Stearns were drained by fleeing customers late last week, resulting in the bank being sold at the weekend in a fire sale deal to rival JP Morgan Chase.The Fed's measures came after cash reserves at the United States' fifth largest investment bank Bear Stearns were drained by fleeing customers late last week, resulting in the bank being sold at the weekend in a fire sale deal to rival JP Morgan Chase.