Fed to allow emergency bank lending program expire on March 11

The Federal Reserve announced on Wednesday that it will allow its Bank Term Funding Program to expire as scheduled on March 11, as it wraps up a lifeline program created for banks during last spring's lender turmoil.

The U.S. central bank also said it was adjusting the terms of new loans under the remaining days of the program so the interest rate is no lower than the rate on reserve balances, effective immediately.