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July 25, 2008 12:12:21 PM CDT

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Top Banks Borrow $2B From Fed

Posted Aug 23, 07 5:12 AM CDT in US,  Business 

(Newser) – America's biggest banks—Citigroup, Bank of America, J.P.Morgan Chase and Wachovia— have borrowed a total of $2 billion from the Federal Reserve at the government's so-called discount window. It's an attempt to shore up the faltering credit markets by encouraging smaller banks to borrow from the Fed without stigma, the Wall Street Journal reports.

Deutsche Bank also borrowed from the discount window because it's "important to support the Fed's efforts and the market overall," said a bank statement. All the institutions have substantial liquidity and other funding sources. The Fed cut the interest rate it charges for discount window loans to 5.75% last week.

Source Wall Street Journal

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Federal Reserve Chairman Ben Bernanke (AP Photo/J. Scott Applewhite/files)   (Associated Press)
Chairman of the Federal Reserve Ben Bernanke, left, is escorted by his security detail as he leaves a meeting on Capitol Hill, Tuesday, Aug. 21, 2007 with Chairman of the Senate Banking committee and...   (Associated Press)
One of the Federal Reserve buildings in Washington.   (Associated Press)
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Federal Reserve  • Citigroup  • JPMorgan Chase  • bank  • Bank of America  • Wachovia  • Deutsche Bank  • Wells Fargo


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