Feds consider emergency loan extension

July 8, 2008 7:41:59 AM PDT
The Federal Reserve is considering an extension of its emergency loan program for Wall Street firms. The Fed wants to restore confidence and stability to the financial system, which has been troubled since last August.

Chairman Ben Bernanke also says the central bank next week will issue new rules aimed at protecting future homebuyers from questionable lending practices.

The rules would crack down on lending practices blamed for hurting "subprime" borrowers, hit hardest by the housing slump and credit crunch. The plan would apply to new loans made by thousands of lenders, including banks and brokers.