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The Fed also lowered its standards for the kinds of collateral that it would accept against such short-term loans.
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Because of the way A.I.G. wrote its swaps, and because the company had a double-A credit rating at the time, it did not have to put up collateral to assure its customers that it would be able to pay on the insurance if necessary.
Trichet's statements marked a reversal for the ECB, which said in January that it wouldn't soften its collateral policy for the sake of a single country.
In an additional measure to help ailing banks and prevent a credit crunch, the European Central Bank said Friday that it would broaden the collateral it accepts for low-interest loans.
Previously the E.C.B. had said that it would raise the threshold for collateral at the end of 2010.
Previously, the central bank had said that it would raise the threshold for collateral at the end of 2010.
It also announced it would accept mortgage collateral from the banks for the loans, raising the prospect that it would effectively absorb potential losses on securities whose value is now highly questionable.
Although vascular reconstruction secured the blood flow to the legs, it was also important to avoid damaging the epigastric artery so that it would still be available to serve as collateral circulation in the event of future stent re-stenosis.
Greece's banks may anyway present a more urgent problem, especially after the ECB announced that it would no longer accept Greek government bonds as collateral (see article).
Ambac shares were also hurt on Wednesday by Standard and Poors announcement that it would reevaluate the companys exposure to subprime collateral.
Instead, they have been proactive: On Feb. 4 the ECB announced that it would no longer accept Greek government bonds as collateral.
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