Frankfurt  - The European Central Bank (ECB) said Monday it was watching money market conditions closely in the eurozone, following indications that US bank Lehman Brothers would declare itself bankrupt.

The ECB said from its headquarters in Frankfurt it was ready to contribute to orderly conditions in the euro money market.

The US Federal Reserve said Sunday it was taking measures to stabilize conditions on financial markets, including accepting a wider range of financial instruments as collateral.

"We have been in ongoing discussions with market participants, including through the weekend, to identify potential market vulnerabilities in the wake of an unwinding of a major financial institution and to consider appropriate official sector and private sector responses," Federal Reserve Board Chairman Ben Bernanke said in a statement. (dpa)