In yesterday's release of lending data by the Federal Reserve Bank covering 2008 to early 2010, one item that caught the eye of many observers was the amount of overnight borrowings by some corporate credit unions, notably U.S. Central and WesCorp–"astounding," said an industry analyst.
The amounts are breathtaking.
On Nov. 24, 2008, for instance, U.S. Central borrowed $6 billion from the Fed's so-called discount window, a long-established emergency loan program for institutions in need of short-term funds who lacked other places to get it. It returned on Nov. 25 for another $6 billion. There were dozens more transactions, often over $1 billion at a time.
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