U.S. banks’ borrowed a record $367.8 billion per day from the Fed last week

[Slimprofits]

NYTimes.com Dealbook: Banks Borrow Record From Fed as Last Resort

Banks’ discount window borrowings averaged $367.80 billion per day in the week ended October 1, nearly double the previous record daily average of $187.75 billion last week, Federal Reserve data released on Thursday showed.

Primary credit borrowings averaged a record $44.46 billion per day in the latest week, versus $39.36 billion the previous week.

Primary dealers and other broker dealers credit borrowings were $146.57 billion as of Wednesday Oct 1, up from $105.66 billion on September 24.

Loans in the “other credit extensions” category, including loans to insurer AIG were $61.28 billion as of October 1, versus $44.57 billion on September 24.

Lending via the asset-backed commercial paper money market mutual fund liquidity facility surged to $152.1 billion as of October 1, from $72.67 billion on September 24.

Proceeds in the U.S. Treasury supplementary financing account were $344.47 billion on October 1, versus $159.81 billion on September 24, the Fed said.

Another "the map says we're f*cked" report?

And The Governator wrote a letter Paulson this week, asking for $7 billion loan for the people of California.

[we_are_toast]

Re: U.S. banks’ borrowed a record $367.8 billion per day from the Fed last week

So if Banks are borrowing all this money, where is it all going? If they're lending it out shouldn't that be easing the credit crunch? If they're not lending it out, why are they borrowing it?

[Supercilious]

Re: U.S. banks’ borrowed a record $367.8 billion per day from the Fed last week

So if Banks are borrowing all this money, where is it all going? If they're lending it out shouldn't that be easing the credit crunch? If they're not lending it out, why are they borrowing it?

This is just buffer money shared by Mother Duck to keep the ducklings afloat until the conversion is completely or until a rate cut unfreezes some of the iceberg paper.
I thought that after the $700 bailout the fed needed to pump about $4 trillion extra treasuries before a rate cut. Let's see ....

[phirang]

Re: U.S. banks’ borrowed a record $367.8 billion per day from the Fed last week

This is just buffer money shared by Mother Duck to keep the ducklings afloat until the conversion is completely or until a rate cut unfreezes some of the iceberg paper.
I thought that after the $700 bailout the fed needed to pump about $4 trillion extra treasuries before a rate cut. Let's see ....

A rate-cut... finally, a chance to offload some not-so-precious metal.

[Supercilious]

Re: U.S. banks’ borrowed a record $367.8 billion per day from the Fed last week

A rate-cut... finally, a chance to offload some not-so-precious metal.

Some two weeks ago I was trying to explain to EJ why the Fed can and probably would cut rates further:

http://www.itulip.com/forums/showpos...8&postcount=37

[c1ue]

Re: U.S. banks’ borrowed a record $367.8 billion per day from the Fed last week

EJ has never said the Fed wouldn't cut rates further - what he said was that the Fed is aware of what happens when you cut to zero and the problem isn't fixed yet: Japan and the Twilight Decade.

[Slimprofits]

Re: U.S. banks’ borrowed a record $367.8 billion per day from the Fed last week

Banks borrow record $437.5 billion per day from Fed

Banks and dealers' overall direct borrowings from the Fed averaged a record $437.53 billion per day in the week ended October 15, topping the previous week's $420.16 billion per day.