European Banks Dominated Use of Fed’s Commercial Paper Program
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The U.S. subsidiaries of European financial institutions, led by Zurich-based UBS AG and Brussels-based Dexia SA were among the largest users of a government program to provide emergency short-term funding to U.S. companies and banks during the credit crisis.
Six European banks were among the top 11 companies that sold the most debt overall to the Commercial Paper Funding Facility. They sold a combined $274.1 billion, according to data made public today by the U.S. central bank. UBS sold $74.5 billion, the most among all borrowers. The largest U.S.-based user was insurer American International Group, selling $60.2 billion.