What’s $441 Billion Among Friends? Bank Borrowering from Fed Soars

Commercial banks borrowed another record amount from the Federal Reserve’s discount window, pushing total direct lending by the central bank above $441 billion in the latest week, The Wall Street Journal reports.

The Journal writes:

The Fed’s record lending of $441.4 billion last week, including direct loans to depository institutions and securities firms, tops the record of $430.9 billion in the prior week. The Fed’s lending has soared in recent weeks, with already tight credit markets coming under more pressure as banks feared lending to one another.

Lending through the primary credit facility, used by commercial banks, rose to $101.9 billion Wednesday from $98.1 billion a week earlier. Average daily borrowing by banks rose to $131.1 billion from $75 billion. Lending through the Fed’s primary dealer credit facility, created in March for investment banks after the near-collapse of Bear Stearns, rose to $133.9 billion from $122.9 billion a week ago.