Fed alters rules as part of money fund facility

WASHINGTON (Reuters) - The Federal Reserve on Friday announced changes to leverage and risk-based capital rules to make it easier for banks to participate in a program aimed at boosting money market mutual funds, which have come under stress in the current financial crisis.

The rule "would provide a temporary limited exception from the Board's leverage and risk-based capital rules for bank holding companies and state member banks," the Fed said in a statement.

The changes will facilitate participation by banks and bank holding companies in an emergency facility announced by the Fed earlier to open its discount window to banks buying asset-backed commercial paper from money market mutual funds.

(Reporting by Mark Felsenthal and Alister Bull)