Cash-short banks borrowed nearly $300 billion in emergency funding from the Federal Reserve last week, the Fed announced Thursday.
Nearly half the money – $143 billion – went into holding companies for the two major banks that failed Silicon Valley Bank and Signature Bank last week, triggering widespread alarm in financial markets.
An additional $148 billion in credit was provided through a long-term program called the “Discount Window”, a record amount for that program.
The Fed has lent an additional $11.9 billion from a new lending facility announced on Sunday. The new program enables banks to raise cash and pay any depositors who withdraw funds.
Banks posted high-quality collateral, such as Treasury bonds, for all loans. The Fed expects all loans to be repaid.
Orignal Post From: Banks borrowed $300 billion from the Fed’s emergency fund last week