The actions of the central banks in major markets to supply more liquidity and to widen the limits on their temporary swap lines helped defrost the interbank market overnight. The interest rate on overnight US$ Libor fell to 3.84 per cent from 5.04 per cent the previous evening, though longer term US$ Libor rates moved up.The US Fed, European Central Bank, Bank of Canada, Bank of England and Swiss National Bank all coordinated an extension in their swap lines that in turn will support repurchase agreements with local banks. Most of the funding appears to be from the Fed to the other central banks, and up to US$180 billion in aggregate.While those actions helped unlock the interbank market (and may also have contributed to a recovery in US equity markets), yet more famous financial institutions may be looking ropey.Morgan Stanley chief executive John Mack told Citigroup CEO Vikram Pandit on Tuesday night (US time) that "We need a merger partner or we're not going to make it," or so the New York Times reported. Note, though, that the newspaper later ran a retraction.Two other options for Morgan Stanley are the sale of 49 per cent to China Investment Corp (reported overnight by the Financial Times) or an outright sale of US commercial bank Wachovia (a theory circulating for several days).Another gem is that Russia's government is throwing US$20 billion in some fashion at its stock market. Russia also placed USA$59 billion on deposit at the nation's three largest banks, The Financial Times reported.