Sep
19
2008
Wall street jumps following regulatory measures
Posted by: helenoliveri in News, tags: federal reserve, loans, stock market, wall streetNEW YORK (MarketWatch) — U.S. stock indexes on Friday readied to leap higher at Wall Street’s start in warmly embracing the Treasury and Federal Reserve’s plan to unfreeze the credit markets and regulators in Washington and London moved against short sellers.
“The Federal Reserve’s decision to provide loans to financial institutions to buy asset-backed commercial paper from money market funds could also help pump liquidity in the corporate sector, said analysts at Action Economics. “This is more good news for the markets, helping to thaw out these vital investment vehicles.”
The Fed’s rescue plan, along with the Securities and Exchange Commission’s move to ban short-selling on 799 financial shares through Oct. 2 “appear to be providing the long-awaited tonic to the crisis,” the Action Economics analysts said.
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