Three Top Banks Beg For Fed Loans

Subject: Three Top Banks Beg For Fed Loans Fri Mar 21, 2008 6:06 am

NEW YORK - Three of the nation's largest investment banks said they have borrowed from a program created this week by the Federal Reserve to stimulate lending amid concern that Wall Street faced a cash shortage.

"We have tested the window because we want to remove the stigma from the window," said Morgan Stanley Chief Financial Officer Colm Kelleher in an interview yesterday, referring to the Fed lending program. "It's meant to be there for normal business. It's not meant to be there as a last-recourse thing."

Erin Callan, chief financial officer of Lehman Brothers Holdings Inc., said the company used the window Tuesday night, adding: "We wanted to show some leadership." Yeah, in begging!

Michael DuVally, a spokesman for Goldman Sachs Group Inc., said his firm also is "testing" the Fed facility, which opened Monday, and will use it "if doing so makes sense from an economic and funding diversification point of view."

Wall Street firms were reluctant to turn to the Fed earlier this week because of concern that it might make them appear financially weak, The Wall Street Journal reported yesterday.

They are motherfucking weak, they are the same manifestation of the fucking corrupt system... in a real laissez faire market... these fucks are history!!! Got no chance whatsoever!

The Fed started the lending program, which is similar to the so-called discount window used by commercial banks, after a run on Bear Stearns Cos. last week pushed the fifth-largest securities firm to the brink of collapse.

The central bank's new Primary Dealer Credit Facility allows Wall Street banks to borrow money overnight at a 3.25 percent interest rate. It will be in place for at least six months and "may be extended as conditions warrant," the Fed said. A range of collateral - including investment-grade mortgage-backed securities - will be accepted to back the overnight loans.

Under the Fed's existing discount window for commercial banks, loans are available for as long as 90 days; the Fed extended the terms from 30 days in a decision announced Sunday.

Also on Sunday, the central bank approved a cut in the discount rate - its lending rate to financial institutions - to 3.25 percent from 3.50 percent. The Fed lowered that rate again Tuesday an additional three-quarters of a point to 2.5 percent.

http://www.baltimoresun.com/business/bal-bz.lend20mar20,0,1419917.story

Saving the rats from drowning... they should be burned! Scum!

Three Top Banks Beg For Fed Loans

Three Top Banks Beg For Fed Loans

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