Furniture maker to lay off about 400

The Morristown, Tenn.-based company said 135 workers will continue sewing operations in Blue Mountain.

The Knoxville News-Sentinel newspaper also reported that Berkline was closing its Loudon County, Tenn., plant, which would put another 40 people out of work by April 30.

Berkline shifted 150 jobs last year from its leather and fabric cutting operation in Morristown to Blue Mountain. It also moved the production of its stand-alone recliner production from Livingston, Tenn., to Blue Mountain, affecting about 250 jobs in East Tennessee.

The company closed its Baldywn, Miss., facility in August 2006, putting 400 workers out of work.

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WASHINGTON (AP) ‘ The Federal Reserve announced Friday it will auction another $100 billion in April to cash-strapped banks as it continues to combat the effects of a credit crisis.

The central bank said it would make $50 billion available at each of two auctions, on April 7 and April 21.

Through the end of March, the Fed has provided $260 billion in short-term loans to commercial banks through the innovative auction process.

All the moves have been designed to cope with a serious financial crisis that has roiled U.S. and global markets and caused the near-collapse of Bear Stearns Cos., the nation’s fifth largest investment bank.

The Fed has been holding auctions every two weeks since December to provide short-term loans to commercial banks. It started with auctions of $20 billion, then pushed the level to $30 billion, and in March raised the auction amount to $50 billion as the credit shortage grew.

The Fed’s auctions have drawn criticism from some that the central bank, and ultimately U.S. taxpayers, could be financing a bailout for firms that engaged in risky lending practices.

Fed Chairman Ben Bernanke will face questions about the Fed’s recent moves when he testifies Wednesday before Congress.