Wachovia Held $29 Billion in Fed’s Discount-Window Borrowing

Wachovia Corp., the bank later acquired by Wells Fargo & Co., carried a $29 billion balance at the Federal Reserve’s discount window over two days in October 2008 as the industry’s use of the program hit a record.

As clients withdrew money and investors refused to lend, Wachovia borrowed $29 billion on Oct. 6 and then on Oct. 8 repaid $11 billion and took out another $7 billion, according to Fed documents released today in response to a Freedom of Information Act request. Borrowing from the Fed’s discount window, its oldest lending program, rose to a record $111 billion in the week ended Oct. 29, 2008.