they seem to be following what pimco says with a lag. so for next they could assume the role of 'clearinghouse' for the financial system
Should have done it with BSC - just nationalised it so that the US Government becomes the counterparty. It would have stopped the collapse of confidence - doesn't matter who you deal with because the US will be the counterparty if they fail. Obviously this did not appeal to the fake 'free market' rhetoric, so now we are where we are.
UK's gordon brown is asking everybody to do this. The Fed is being extremely active, they must be thinking of something of this kind with the Treasury