Released on: August 25, 2008, 7:38 am

Press Release Author: Richard Drake

Industry: Financial

Press Release Summary: World Business ('Cornerstone Worldwide') Sees Fed extension
of lending facilities as sign turmoil to continue

Press Release Body: Analysts at Cornerstone Worldwide, the Asian-based investment
group are thought to believe that the Federal Reserve's decision to extend its
emergency lending programs to Wall Street firms demonstrates that the turmoil that
has blighted the financial markets over the last year is set to continue.

Cornerstone Worldwide have remained bearish on the financials most affected by the
carnage wrought by the credit crunch despite the many economists' assertions that
the worst of the crisis was over.

The US central bank has been pumping liquidity into the system but normal activity
has, so far, failed to resume said the Cornerstone Worldwide sources.

Both the Primary Dealer Credit Facility for direct loans to securities firms and the
Term Securities Lending Facility for loans of Treasuries, both in operation since
March, will now extend through Jan. 30 2009. If, at that time, the Fed deems that
markets ``are no longer unusual and exigent,\'\' the Fed said in a statement in
Washington, the facilities would then be cancelled.

Policy makers are expected to keep their benchmark rate at 2 percent when the FOMC
meets again on Aug. 5 although the Cornerstone Worldwide source said that traders
still see a 71 percent chance of at least a quarter-point increase by year-end,
futures prices show.


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