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FRANKFURT, September 15, 2008 (AFP) – The European Central Bank (ECB) and the Bank of England (BoE) poured billions into money markets on Monday to ensure sufficient liquidity in the wake of the collapse of Lehman Brothers. He said he thought the Fed would try to avoid this step, which would be a “reversal of the previous shift to more targeted measures.”

“The US Treasury has decided it was time for shock therapy, and taken an extremely gutsy gamble by letting Lehman fail,” Annunziata said.

“The financial system now faces the unprecedented challenge of absorbing the unwinding of a major broker. If it works, it should boost considerably the hopes that the global financial system can work itself out of the year-long crisis. But the risk is enormous.”

He added: “We are witnessing a turning point in the modern history of the financial system, as three major brokers have now disappeared from the scene,” referring to Bear Stearns, Lehman Brothers and Merrill Lynch — which looks set to be sold to Bank of America.

“The coming days and weeks will be truly crucial to the global economic outlook.”

The ECB injected 30 billion euros (42.7 billion dollars) in a one-day special operation, while the BoE said it had