Bankruptcy

Fed Lending Stat?s for Last Week

By J. Michael McBride

Since the Federal Reserve has been responding to the credit crisis by adding more and more money to the money supply, the total amount of funds loaned to banks by the central banks has increased greatly. Here is a recent article which reports that banks have averaged just under 19 billion in daily loans for the last week. “A Fed report released Thursday said commercial banks averaged $18.98 billion in daily borrowing over the past week. That compared with a daily average of $18.47 billion in the previous week.” The Fed has also opened its lending window to directly include brokerage firms as well as Fannie Mae and Freddie Mac, however, in the past week, as in earlier weeks, investment banks did not take any loans out directly from the Fed.

“Separately, as part of efforts to relieve credit strains, the Fed auctioned nearly $25 billion in Treasury securities to investment companies Thursday. The Fed received requests for $45 billion worth of the securities.

In exchange for the 28-day loans of Treasury securities, bidding companies can put up as collateral more risky investments. These include certain mortgage-backed securities and bonds secured by federally guaranteed student loans.”

Here is a link to the entire article:
http://biz.yahoo.com/ap/080904/fed_credit_crisis.html?.v=4

Michael

Full post as published by Texas Lawyer Blog on September 05, 2008 (boomark / email).