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Article: For I-Banks, Fed Really Is Last Resort.(Washington)(investment banks)
- Article from:
- American Banker
- Article date:
- July 22, 2008
- Author:
CopyrightCOPYRIGHT 2008 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Steven Sloan
WASHINGTON - Though Federal Reserve Board Chairman Ben Bernanke signaled this month that he would likely extend investment banks' access to the discount window beyond September, the firms themselves do not seem so interested now.
The primary dealer credit facility established in March to lend to investment banks after the Bear Stearns Cos. rescue has gone unused for the past three weeks.
Several observers said the firms are increasingly wary of using the window, because of escalated rhetoric in Washington about toughening oversight as a result of the access.
"They're cognizant of the fact that this facility, if it ...