U.S. Investment Banks Borrow $10 Billion from Fed Discount Window
Under the Fed's new primary dealer credit facility, investment banks borrowed $10.341 billion from the discount window for the week ending April 2, the Federal Reserve reported Thursday. Also, $92.658 billion was borrowed by dealers under the Term Securities Lending Facility (TSLF).
The TSLF auction was held on March 27, 2008 and settled the following day. The TSLF lends U.S. Treasury Securities to primary dealers through an auction process. The loans have a 28-day term.
The Fed did not extend any more credit to JPMorgan Chase for the Bear Stearns rescue operation.
Term auction credit outstanding for the week ending March 26 increased by $20 billion to $100 billion.
By Patrick McGee, edited by Nancy Girgis