Federal Reserve lends $75bn more

It is the Federal Reserve's 13th such auction

The US Federal Reserve has auctioned another $75bn (£38bn) in short-term loans to the financial sector.

The auction on Monday was oversubscribed, with 73 bidders applying for $95.9bn in funding.

It is the 13th such auction that the Federal Reserve has held since mid-December as part of its attempts to help banks through the credit crunch.

Banks have been reluctant to lend to each other, making it harder for firms and individuals to get loans.

The loans are for 28 days and carry an interest rate of 2.26%.

The series of auctions has been particularly unusual because investment firms have been allowed to get emergency funding from the Federal Reserve, which is an option usually only available to commercial banks.