Fed Emergency Loans Plunge After First Republic Seizure
- Outstanding loans on discount window, BTFP total $81.1 billion
- Fed reclassified First Republic’s borrowings after seizure
The Marriner S. Eccles Federal Reserve building in Washington, DC.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
Emergency borrowing from the Federal Reserve plunged last week, mostly reflecting the seizure of First Republic Bank, which accounted for a large share of outstanding loans.
The US central bank had $81.1 billion of loans outstanding to financial institutions through two backstop lending facilities in the week through May 3, compared with $155.2 billion the previous week, according to data published Thursday. That’s the smallest amount since the banking-sector turmoil started in March.