Banks tapped Fed for billions

first_img BANK of America went cap in hand to the Fed’s discount window twice more than perviously revealed, according to a slew of documents released by the Fed yesterday.It borrowed a total of $1bn (£624m) over two days in August 2007, in addition to $500m previously disclosed.The documents, which were released after a news wire obtained a court order, also show that two second-tier European financial players – Dexia and Depfa – accounted for nearly half of the $111bn borrowed from the Fed on 29 October, 2008. Nine of the 12 largest borrowers on that day, when lending through its emergency discount window peaked, were foreign-owned firms.Belgian-French Dexia borrowed $26.5bn, and Dublin-based Depfa, a subsidiary of German property lender Hypo Real Estate Holding, accepted $24.6bn. In the days and weeks surrounding Lehman’s bankruptcy, the Fed also made multi-billion-dollar loans to other foreign banks through its discount window, including Bank of Scotland, which took out $5bn overnight, Royal Bank of Scotland, Commerzbank, Societe Generale and Austria’s Erste Group. Arab Banking Corp, now owned by the Central Bank of Libya, borrowed $1.1bn. Show Comments ▼ Tags: NULL Thursday 31 March 2011 8:44 pm Banks tapped Fed for billions Read This NextWATCH: Shohei Ohtani continues home run tear, Los Angeles Angels winSportsnautYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofChicken Bao: Delicious Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofBaked Sesame Salmon: Recipes Worth CookingFamily Proof’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofCheese Crostini: Delicious Recipes Worth CookingFamily Proof Share whatsapp KCS-content whatsapp last_img read more