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Author: kahunacfa Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35357  
Subject: Re: Big Banks Borowing from Fed Date: 8/25/2007 8:56 PM
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A bank borrowing directly from the Federal Reserve Bank System is a sign that the bank can not get funds anywhere else. When a commercial bank goes to the "Discount Window" as it is called, the bank invites the Fed "into its knickers". The extra attention the Discount Window borrowing attracts is the reason why the Fed Discount Window is a desperate attempt for a weak bank to find liquidity. The fact that some big Banks borrowed from the Fed at the Discount Window was nothing more than the Big Banks "Kissing-Up' to the Fed. Sometimes it is called Brown-nosing. Citi-Bank going to the Discount Window just shows they still remember how to do it. In actual practice they would rather visit Louie the Louse in a back Alley.

Why don't you people understand that?

Kahuna,CFA
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