Banks borrow record $367.8 bln per day from Fed

[UpInArms]

Source: Reuters

NEW YORK, Oct 2 (Reuters) - U.S. banks' direct borrowing from the Federal Reserve shot to a record in the latest week as financial institutions became almost totally reliant on the lender of last resort amid the most severe financial crisis since the Great Depression.

Banks' discount window borrowings averaged a staggering $367.80 billion per day in the week ended Oct. 1, nearly double the previous record daily average of $187.75 billion they borrowed the previous week.

Read more: http://www.reuters.com/article/bondsNews/idUSNYG00134220081002

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so when do they pay that back?

[phantom power]

1. That hissing sound you hear...

is the dollar deflating, as the Fed prints $367 billion per day.

[orwell]

3. You would think so...

...but the dollar has been rallying sharply for weeks. Intraday the Dollar Index was close to a 1 year high.

It doesn't make a whole lot of sense to me either...

[Hydra]

2. They pay it back all the time

What I wonder is whether this is mostly the smaller banks who are still loaning. If the bigger banks that are currently opting to freeze their loans are still borrowing, why?

[TreasonousBastard]

4. There are payment schedules, just lilke any loan...

http://www.frbdiscountwindow.org/mechanics.cfm?hdrID=14&dtlID=46

[mcollier]

5. Thanks f or the fed reserve link

That clears up an aweful lot. Still don't see why banks need the bailout, why not use the loan option from the fed reserve....


I doubt any institution will give me somebody elses money after being iresponsible...

[cachukis]

8. the loan is soured

[cachukis]

7. fabulous link

[creeksneakers2]

6. They generally pay it back the next day

So the same loans just keep spinning on.