[lbo-talk] borrowing as a public service

[Doug Henwood]

[This is a little odd: we're borrowing from the discount window to  
show it's ok? Not because we're strapped for cash and don't want to  
say that lest we scare the hell out of everyone? According to the FT,  
Deutsche Bank did a similar thing last Friday, and for similar reasons.]

NEWS ALERT
from The Wall Street Journal

Aug. 22, 2007
Four major U.S. banks said they have each borrowed $500 million from  
the Federal Reserve's discount window, becoming the first to say they  
have taken advantage of the central bank's latest attempt to add  
liquidity to the credit markets. Citigroup said it is "pleased to  
inject liquidity
into the financial system during times of market stress."  Minutes  
later, J.P. Morgan Chase, Bank of America and Wachovia issued a joint  
press release saying they also borrowed $500 million each. The trio  
said "the companies believe it is important at this time to take a  
leadership role in demonstrating the potential value of the Fed's  
primary credit facility and to encourage its use by other financial  
institutions."

For more information, see:
http://online.wsj.com/article/SB118779988225905435.html?mod=djemalert