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To: Jacob Snyder who wrote (40653)10/7/2008 6:11:21 PM
From: Jacob Snyder  Read Replies (1) | Respond to of 95617
 
Fed to Purchase Commercial Paper:

The Fed said it would purchase three-month unsecured and asset-backed commercial paper directly from issuers, an unusual foray into unsecured lending. Traditionally, when the Fed lends to banks and other financial institutions, the loans are secured by collateral. online.wsj.com

Will they lend money to anyone, no questions asked? If not, how will they decide who to give unsecured loans to? The U.S. commercial paper market is $1.61 trillion. How much of this will they buy?