Lending through the Federal Reserve Board's discount window grew less than 1% during the past week, to $136.2 billion.

Traditional borrowing by commercial banks fell 4.3%, to $61.3 billion, and there was $1 million of loans to unhealthy banks. Loans to investment banks budged up 0.5%, to $20.2 billion. The Fed said it had extended $43.6 billion by Wednesday through the discount window to support American International Group. The central bank also has a limited liability corporation designed to help to insurance giant. Loans there were valued at $18.5 billion.

Lending against ABCP held by money market mutual funds fell 10.3%, to $6.8 billion. The Fed has yet to make loans to another limited-liability corporation that will buy unsecured assets held by money markets.

The Fed's balance sheet also reflects $4.7 billion the Federal Reserve Bank of New York lent last week to investors under the Term Asset Backed Securities Loan Facility (TALF).

The Treasury Department provided $100 million to the Fed this week to support the Talf but the central bank did not include that funding on its balance sheet.

Meanwhile, the New York Fed purchased $47.3 billion of mortgage-backed securities from the government-sponsored enterprises: $32.6 from Fannie Mae; $13.5 from Freddie Mac and $1.3 billion from Ginnie Mae.

Total purchases were nearly four times higher than a week earlier. The Fed's balance sheet grew 0.2% during the week to $2.1 trillion. Reserves held by financial institutions at the central bank increased 5.4%, to $822.4 billion.

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