Federal Reserve Promises Additional Funding For Banks

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The Federal Reserve announced Tuesday that it is prepared to provide additional funds to banks across the country in the wake of the alleged terrorist attacks in New York and Washington, D.C.

According to a statement reported by the Associated Press, "The Federal Reserve System is open and operating. The discount window is available to meet liquidity needs."

The announcement was made to assure consumers, investors and the American public that the country's banking and financial systems will remain in tact despite the attack, which destroyed the World Trade Center and the Pentagon.

The last time the Federal Reserve made such a statement came in 1987 after the stock market crashed and dropped more than 500 points in a single trading day. Experts feel that statement of confidence was a major factor in restoring calm after the market crash and avoiding a full-scale depression. Federal officials hope today's statement will have a similar impact in the wake of the plane crashes that are alleged to be the result of a terrorist attack.


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