Fed pump in $200 bil

The Fed announced Tuesday it would ramp up loans of cash and securities to banks and dealers. The new program will let firms borrow up to $200 billion of Treasurys and pledge various flavors of mortgage-backed securities, including both agency and private-label instruments, as collateral Markets for mortgage securities had been rapidly deteriorating recently as investors facing margin calls and others anxious about the overall financial health of government-sponsored enterprises Fannie Mae and Freddie Mac sold their holdings. The developments alarmed investors and policy makers and led to selling of financial stocks in recent days.