U.S. Banking Giants Tap Fed’s Discount Window to Ease Stigma
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Eight giant U.S. banks said they would access the Federal Reserve’s discount window, in a move meant to remove the longstanding stigma of using it, as the financial system comes under mounting pressure from the coronavirus pandemic.
The banks -- including JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. -- will use the facility to “reassure financial institutions of all sizes” that they can tap it too, the Financial Services Forum industry group said in a statement late Monday. Federal regulators have been encouraging banks to normalize use of the window after rates in repo markets spiked in September.