Central Banks Unveil Coordinated Action to Ease Credit Conditions

Breaking: The Federal Reserve, European Central Bank and four other central banks unveiled a coordinated action to provide liquidity to "ease strains in financial markets."

The central banks agreed to lower the pricing on existing so-called dollar liquidity swap arrangements by 50 basis points. As a contingency measure, they also plan on establishing "bilateral liquidity swap arrangements."

The other banks involved were the The Bank of Canada, the Bank of England, the Bank of Japan, and the Swiss National Bank. The move comes on the heels of the Chinese central bank's cutting of the required reserve ratio on the largest lenders to ease credit conditions there.

Stock-index futures soared on the report, with shares of Bank of America (BAC: 5.07, -0.18, -3.43%) and JPMorgan Chase (JPM: 28.56, -0.60, -2.06%) zooming more than 3% to the upside.

Read more: http://www.foxbusiness.com/economy/2011/11/30/central-banks-unveil-coordinated-action-to-ease-credit-conditions/#ixzz1fCE5nDjW