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View Full Version : Banks borrow record $112B from Fed


BornAgain123
October 30th, 2008, 11:43 PM
http://money.cnn.com/2008/10/30/news/economy/fed_borrowing/?postversion=2008103017

By David Goldman, CNNMoney.com staff writer
Last Updated: October 30, 2008: 5:38 PM ET

NEW YORK (CNNMoney.com) -- With sources of credit still largely frozen, banks borrowed a record amount from the Federal Reserve in the past week, according to Fed data released Thursday.

The Fed reported that commercial banks borrowed a record $111.9 billion a day, on average, from the Federal Reserve's emergency lending window over the past week. That's up $6.1 billion from the $105.8 billion they borrowed in the previous week.

"Banks literally have an open checkbook to acquire cheap liquidity," said Matt McCormick, portfolio manager at Bahl & Gaynor Investment Council. "Borrowing will continue until morale improves."...............