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Fed Discount Window Lending Declines

Lending through the Federal Reserve Board's discount window edged down less than 1% during the past week, to $105.8 billion Wednesday.

Borrowings against ABCP dropped 30%, to $79 million, and investment banks continued to abstain from the window.

Traditional borrowing by commercial banks moved up 1.7%, to $30.5 billion. Lending to weak institutions fell 4%, to $595 million.

Separately from the discount window, the Fed bought nearly $49 billion in commercial paper as of Wednesday, an 8.8% decline from a week earlier.

Reserves held by financial institutions at the central bank gained 5.3%, to almost $862 billion. The Fed's balance sheet grew less than 1%, to $2.08 trillion.

The balance sheet action came as the Fed asked a federal judge to delay, while it prepares an appeal, enforcing a court order early in the week to name the borrowers from the central bank's emergency facilities.

"Immediate release of these documents will cause irreparable harm to these institutions and to the board's ability to effectively manage the current, and any future, financial crisis," the Fed said in its request.

 

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