Fed auctions $75 billion to ease credit problems

In an effort to relieve the credit markets, the Federal Reserve had auctioned $75 billion in loans to troubled banks, so far the total since December is at $510 BillionHousing, credit and other financial problems have been a drag on the economy since last August and hit a crisis point in March of 2008 with the near collapse of Bear Stearns nation’s largest investment house.In this latest auction, banks paid the fed an interest rate of 2.100% for short-term loans. Over 75 bidders participated in the auction for a slice at the $75 billion in 28-day loans. Bids of about $84.4 billion were received by the Fed this Monday with the results released on Tuesday.