U.S. investment banks borrowed no money from the Federal Reserve in the latest week, the first time primary dealers have not sought cash directly from the Fed since the emergency facility was introduced in March following the near collapse of Bear Stearns.
The week before, dealers had borrowed a daily average of $1.74 billion from the Primary Dealer Credit Facility (PDCF). The news comes after Fed Chairman Ben Bernanke said this week the Fed may keep the facility in place through year end. Initially it had been set to expire in September.
The PDCF is one of several facilities the Fed has introduced to provide cheap financing to financial institutions pinched by the credit crisis.
Banks' discount window borrowings averaged $13.01 billion per day in the week ended July 9, down from an average $16.78 billion per day the week before.
Primary credit borrowings averaged $12.86 billion per day in the latest week, down from $14.86 billion the previous week.
The Federal Reserve's portfolio of Bear Stearns assets, held by holding company Maiden Lane, was valued at $28.94 billion as of July 9, up from $28.89 billion on July 2.