Fed Bails Out Europe

First this:

Europe leaders agree on emergency loan plan by Greg Robb
WASHINGTON (MarketWatch) -- European finance ministers agreed late Sunday on a package of loan guarantees worth as much as 500 billion euros ($670 billion) designed to keep the Greek debt crisis from spreading to other vulnerable countries, Spanish Finance Minister Elena Salgado announced. The agreement came after a full day of closed-door meetings in Brussels. The finance ministers held a joint press conference shortly after the opening of Asian markets to discuss the program. The package was designed to ease market fears that Greece, Portugal or Spain will have to restructure their debt, a move that would have hit European banks particularly hard. The International Monetary Fund will also contribute to the plan.

Immediately followed by this:

Fed to reopen dollar swap program, ECB says by Greg Robb
WASHINGTON (MarketWatch) -- The Federal Reserve is going to reopen a program set up during the financial crisis, to make sure foreign banks have the dollars they need, the European Central Bank announced late Sunday. The Fed will ship dollars overseas through the Bank of Canada, the Bank of England, the ECB and the Swiss National Bank. The Bank of Japan will be considering similar measures soon, the ECB said. The facilities are designed to help improve liquidity conditions in U.S. dollar funding markets and to prevent the spread of strains to other markets and other financial centers, the ECB said in a statement on its web site. The ECB said the first repurchase operations for dollars against ECB-eligible collateral would be carried out on Tuesday.


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