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Bernanke speech brings relief for US market

By James Quinn, Wall Street Correspondent Ben Bernanke has moved to calm financial markets by raising the possibility of extending the Federal Reserve's lending facilities to investment banks and flagging a wider role in banking regulation. The Fed chairman attempted to calm rumours over the impending collapse of another major financial institution by outlining steps to "make the US financial system itself more stable". Mr Bernanke said that the Fed could be charged with promoting market stability. His comments came as attention focused on the American mortgage sector following the near-collapse of IndyMac Bancorp and amid worries over the future liquidity of federal mortgage lenders Fannie Mae and Freddie Mac. The speech helped calm the market, with the Dow Jones Industrial Average up 59 points at 11,293 by lunchtime on Wall... [read full story]                    

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