Fed May Extend Bank Loans

time.com — The Federal Reserve is considering giving squeezed Wall Street firms more time to draw emergency loans directly from the central bank to help them overcome credit problems, chairman Ben Bernanke said. In March, the Fed agreed to let investment houses go to the Fed — on a temporary basis — for a quick, overnight source of cash. That decision has drawn criticism from Democrats that the Fed is bailing out Wall Street and putting billions of taxpayer dollars at risk. The Fed's consideration of giving Wall Street firms more time to tap the Fed's emergency loan program is part of an ongoing effort by the central bank to bring back stability to fragile financial markets and help to bolster shaky confidence on the part of investors.

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