ECB adds $500 billion in liquidity

The European Central Bank today injected a record $500 billion for a temporary, two-week liquidity addition to the banking system of the 13 nations that use the euro as their currency. Analysts said about 400 European banks today borrowed money from the ECB at 4.21%, which helped rates on interbank lending fall from their recent highs. The ECB has been pumping money into the European banking system since August, when subprime lending woes spread to a range of credit markets. The Federal Reserve, the ECB and other European central banks announced an agreement on Dec. 12 to help relieve stress on global lending.