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Fed lifts limits on big bank loans to affiliates: Citi and BofA can lend up to $25 B

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Anonymous
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Fed lifts limits on big bank loans to affiliates: Citi and BofA can lend up to $25 B

 
The Fed move, which allows the banks to lend up to $25 billion, comes amid a deepening crisis in the nation's mortgage industry.
...
Four banks, including B. of A., Citigroup, J.P. Morgan Chase & Co. and G. Kennedy Thompson,
Chairman & CEO Corp., borrowed $500 million each on Wednesday.

I have this image of Kenneth Lewis, Charles Prince, Jamie Dimon and G. Kennedy Thompson (the CEOs) all standing in line at the ATM machine.

Beep, beep, beep, beep.
 
"Darn it! What is that PIN?"
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Anonymous
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Re: Fed lifts limits on big bank loans to affiliates: Citi and BofA can lend up to $25 B

I do agree that the line at the Fed discount window will be getting longer.

For the Fed, it's a thoroughly unenviable tightrope to walk. On the one hand, the Fed must instill confidence in the banking and credit systems, and the move demonstrates its willingness to fulsomely carry out its mission as lender of last resort.

On the other hand, the very fact that the Fed feels the need to take such strong measures is likely making quite a few investors nervous...
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