Stocks tumble after Fed moves

Mar. 17 - Banks take losses on European markets as the U.S. Federal Reserve takes emergency measures to stem global financial crisis.

The measures include lowering its discount rate and extending credit to securities firms for the first time since the Great Depression. The extraordinary action is aimed at ensuring financial organisations have access to liquid funds as the credit crisis roils markets. The Fed's measures came after cash reserves at the United States' fifth largest investment bank Bear Stearns were drained by fleeing customers late last week, resulting in the bank being sold at the weekend in a fire sale deal to rival JP Morgan Chase.

Michelle Carlile-Alkhouri reports.