The efficiency of our financial system at maintaining adequate liquidity is often taken for granted. But on September 11, it could not be taken for granted. The bottlenecks in the pipeline became so severe that the Federal Reserve stepped in to ensure that the financial system remained adequately liquid.
In order to address this situation, the Bank, as emergency measures to provide liquidity for financial markets, successively conducted same-day fundssupplying operations, introduced U.S. dollar funds-supplying operations, and accepted bonds issued by the governments of the United States, the United Kingdom, Germany, and France as eligible collateral.