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| - Amid fears the American financial system will lock up, the Federal Reserve on Tuesday announced yet another mechanism to ensure credit will be available to US homes and businesses. The new credit facility, the second one announced Tuesday, will provide funding for up to 90 days to major financial institutions known as primary dealers, the Fed said. "The facility will allow primary dealers to support smooth market functioning and facilitate the availability of credit to businesses and households," the central bank said in a statement. The central bank is working overtime to shovel cash into the system through all vehicles at its disposal, including by purchasing Treasury bonds and commercial debt, as well as direct infusions into short-term financing markets. The new mechanism will allow firms like JP Morgan, Goldman Sachs, HSBC, Morgan Stanley, Deutsche Bank Securities, BNP Paribas Securities and Nomura Securities to use debt holdings as collateral for credit from the Fed. The program will be in place for at least six months but "may be extended as conditions warrant." hs/cs
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