Treasuries auctioned by Fed

The Federal Reserve has auctioned $24.12 billion in super-safe Treasury securities to big investment firms as part of an ongoing effort to ease credit problems.

The auction -- the sixth of its kind -- was held Thursday and fetched bids slightly less than the $25 billion being made available.

That small reduction could suggest that demand for Treasuries may be moderating a bit. That might be viewed as a sign of some improvement in credit conditions.

In exchange for the 28-day loan of Treasury securities, bidding firms can put up more risky investments, including certain shunned mortgage-backed securities, as collateral.

In Thursday's auction, investment firms paid an interest rate of 0.1% for a slice of the securities.

The auction program is intended to help financial institutions and the troubled mortgage market. The goal is to make investment houses more inclined to lend to each other. It also is aimed at providing relief to the distressed market for mortgage-linked securities.

Wells Fargo buys Flatiron Credit

Wells Fargo & Co., the biggest bank on the West Coast, acquired Flatiron Credit Co. on Thursday as part of a plan to boost insurance-related revenue.

Flatiron, based in Denver, finances insurance premiums, helping customers pay for coverage over time.

Terms weren't disclosed.

Wells Fargo, based in San Francisco, is adding to an insurance business in which growth outpaces the bank's total sales.

Chief Executive John Stumpf told investors this week that insurance was a "big growth" area and said the bank planned to make acquisitions and add products to the unit.

Insurance revenue at Wells Fargo rose 26% in the fourth quarter to $504 million, while total sales increased 12% to $10.6 billion.

Wells Fargo shares rose $1.43, or 4.8%, to $31.18.

From Times Wire Services