>Well, if they charge a little more, doesn't that mean more $$ for
>the feds? It's like an itty bitty tax on the banks, no?
Discount window borrowing is pretty small and rare, so it's not going to make much difference to the Fed's $20-25 billion annual profits. Banks only come to the discount window when they're in trouble, since the Fed is unwelcoming otherwise. It's mainly a symbolic/psychological move, so it's mysterious why they're doing it right now.
Doug