Fed pledges more cash to combat interbank woe

In a bid to further ease money market tensions, the Federal Reserve said on Friday that it will increase the amount of extra funds on offer through its additional open market operations after both of its December auctions were heavily oversubscribed.

The Fed said it will inject an extra $60 billion into the money markets later this month, after adding $40 billion at the end of last year through two operations. As in December, the extra funds will be made available through two Term Auction Fac