Jim D:
what about the "coordinated" part of this action? isn't that aimed at preventing the US dollar from going into free-faill as the FOMC cuts interest rates?
====================================== Mostly to do, I think, with easing the pressure on LIBOR by European banks reluctant to part with the USD's they need to service their dollar-denominated commercial paper and worried about counterparty risk. The swap arrangements give the ECB the dollar liquidity to pass on to their banks at lower than LIBOR rates. The Fed also has an interest in seeing LIBOR come down because many of the upcoming resets are tied to it, affecting the foreclosure rate.
