borrowing as a public service
[This is a little odd: we’re borrowing from the discount window to
show it’s ok? Not because we’re strapped for cash and don’t want to
say that lest we scare the hell out of everyone? According to the FT,
Deutsche Bank did a similar thing last Friday, and for similar reasons.]
NEWS ALERT from The Wall Street Journal
Aug. 22, 2007
Four major U.S. banks said they have each borrowed $500 million from
the Federal Reserve’s discount window, becoming the first to say they
have taken advantage of the central bank’s latest attempt to add
liquidity to the credit markets. Citigroup said it is “pleased to
inject liquidity
into the financial system during times of market stress.” Minutes
later, J.P. Morgan Chase, Bank of America and Wachovia issued a joint
press release saying they also borrowed $500 million each. The trio
said “the companies believe it is important at this time to take a
leadership role in demonstrating the potential value of the Fed’s
primary credit facility and to encourage its use by other financial
institutions.”
For more information, see: http://online.wsj.com/article/SB118779988225905435.html?mod=djemalert