February 19, 2008

US banks borrow $50bn via new Fed facility

By Gillian Tett in London

Published: February 18 2008 20:34 | Last updated: February 18 2008 20:34

US banks have been quietly borrowing massive amounts of money from the Federal Reserve in recent weeks by using a new measure the Fed introduced two months ago to help ease the credit crunch.

The use of the Fed’s Term Auction Facility, which allows banks to borrow at relatively attractive rates against a wider range of their assets than previously permitted, saw borrowing of nearly $50bn of one-month funds from the Fed by mid-February.

OH, yeah, as it all tanks - let's bail out the banks.


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