The program, similar to one the Fed has long had for commercial banks,
will continue for at least six months.
It gives investment firms a place to go for overnight loans.
Commercial banks and investment companies now pay 2.25% in interest
for the loans.
Banks, meanwhile, stepped up their borrowing.
Banks averaged $14.4 billion in daily borrowing for the week ending
May 14.
That compared with $11.7 billion for the previous week.
The identities of commercial banks and investment houses are not
released.
From The Associated Press, 5/15/08:
http://www.usatoday.com/money/industries/banking/2008-05-15-fed-investment-banks-borrowing_N.htm
Investment firms borrow from Fed at fairly steady pace
WA****NGTON (AP) —
Wall Street investment companies are borrowing from the Federal
Reserve's emergency lending program at a fairly steady pace.
The Federal Reserve said in a re****t Thursday that those firms
averaged $16.6 billion in daily borrowing over the past week.
That compared with $16.5 billion in the previous week.
_______________________________________________
Yup. And homeowners get ****.
Harry
