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Fed to conduct first test auction of bank CDs
ECONOMY
Fed to conduct first test auction of bank CDs
The Federal Reserve on Monday will conduct the first test of a new tool intended to soak up the huge amounts of money it has injected into the economy. Under the program, the Fed will of... fer banks the chance to buy the equivalent of certificates of deposit.
The "term deposits" will pay interest and provide banks with an incentive to keep their money at the Fed.
To combat the financial crisis and stimulate the economy, the Fed cut a key short-term interest rate to a record-low rate of nearly zero. It also pumped about $1.5 trillion into the financial system.
Once the economy is on firmer footing, the term deposits program will be one of the Fed's tools for reeling in that extraordinary stimulus.
-- Associated Press
LEGAL
Motorola, Research in Motion settle dispute
Handset makers Motorola and Research in Motion said they have settled a patent complaint over mobile technology that Motorola brought to the U.S. International Trade Commission.
The companies said RIM, the BlackBerry maker, will give Motorola an upfront payment plus continuing royalties for the use of its mobile technology. They did not disclose specific financial terms.
Motorola shares climbed 27 cents, or 4 percent, to $7.11, while RIM rose 39 cents, to $59.50.
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