Heads up: Federal Reserve auctions $30 billion in funds to banks

Tue, Jan. 15, 2008 10:15 PM The Associated Press

The Federal Reserve, working to combat the credit crisis, auctioned $30 billion in funds to commercial banks at an interest rate of 3.95 percent. It was the third in a series of auctions the Fed began last month as a way to provide cash-strapped banks the reserves they need. The 3.95 percent interest rate was the lowest of any of the three auctions so far.

Not liable

The Supreme Court ruled Tuesday against investors who sue businesses that help manipulate stock prices of publicly traded companies. The 5-3 decision gave a measure of protection from securities lawsuits to suppliers, banks, accountants and law firms that do business with corporations engaging in securities fraud.

Applied pain

Applied Materials Inc., a big supplier of computer-chip-making equipment, is jettisoning 1,000 jobs, a 7 percent cutback that suggests some manufacturers are hunkering down for a recession. The cuts announced Tuesday are Applied Materials’ biggest retrenchment since November 2002.