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Charting Historical Discount Window Borrowings

Tyler Durden's picture




 

While we await the thousands of pages of discount window data to hit the public docket, below we present to our readers the historical borrowings on the Fed's Discount Window, which consists of the Primary Credit, Secondary Credit and Seasonal Facilities. Borrowings across all three peaked at $110,753 million according to the Fed. There is of course, no indication of what type of collateral is used against these borrowings although as Zero Hedge first disclosed over a year ago, many of the stocks pledged by failing companies were those of bankrupt companies. There will hardly be much if anything revolutionary in this incremental disclosure, but it will confirm just how many times Goldman and JPM may have accessed the discount window following repeated claims they did not need to do so. The reason banks no longer use the discount window as can be seen on the chart below, is that with $1.4 trillion in excess reserves there are no liquidity constraints any more as all the capital comes in the form of electronic money allocated as reserves by the banks, which money is fungible and thus banks no longer rely on actual lending by the Fed. Incidentally, combined borrowings across all three Discount Window facilities in the week ended March 23 was $13 million: the lowest since 2004.

 

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Thu, 03/31/2011 - 10:43 | 1121311 Cognitive Dissonance
Cognitive Dissonance's picture

Stick save for the bankstas. I can't wait for the new Fed program called "Twin Peaks" to start. Premiering in 4....3....2....

Thu, 03/31/2011 - 10:52 | 1121361 willien1derland
willien1derland's picture

Nice CD - for today's performance of "Twin Peaks" the roles of David Lynch will be played by Hank Paulson & Mark Frost will be played by Ben Bernacke..and without further ado....

Thu, 03/31/2011 - 12:15 | 1121695 Ying-Yang
Thu, 03/31/2011 - 10:42 | 1121315 Hollywood
Hollywood's picture

When the amount "borrowed" decreases, as shown on the above chart, does that mean the money was paid back?

Thu, 03/31/2011 - 10:47 | 1121338 Fish Gone Bad
Fish Gone Bad's picture

The short answer is "no".  The Fed likes to print up all kinds of cute graphs showing all kinds of money porn.  That graph you are looking for may not even exist.

Thu, 03/31/2011 - 11:51 | 1121611 Cash_is_Trash
Cash_is_Trash's picture

Just another entry to the invoice for future generations.

Thu, 03/31/2011 - 10:46 | 1121332 Boilermaker
Boilermaker's picture

Looks normal to me.  Why the drama?

There was trillions in collateral committed...right....right???  Surely, they didn't commit to loans without collateral.

Thu, 03/31/2011 - 10:47 | 1121337 willien1derland
willien1derland's picture

WTF?! - How the hell would you model that event?! Well you see one fine day we were walking down the Yellow Brick Road when SUDDENLY... 

Thu, 03/31/2011 - 10:47 | 1121339 benevolous
benevolous's picture

where's the link to the actual data so we can see for ourselves?

Thu, 03/31/2011 - 10:55 | 1121371 Boilermaker
Boilermaker's picture

Not available...just accept our summary.

Thu, 03/31/2011 - 10:49 | 1121340 buzzsaw99
buzzsaw99's picture

the fed exists to make the rich richer. that is all.

Thu, 03/31/2011 - 10:48 | 1121348 buzzsaw99
buzzsaw99's picture

that money was paid back with money they stole from the taxpayers.

Thu, 03/31/2011 - 11:34 | 1121530 unununium
unununium's picture

They are still finishing the stealing operation.

Observe your 401k to see the thrilling conclusion.

Thu, 03/31/2011 - 10:51 | 1121353 Boilermaker
Boilermaker's picture

It includes the details up to March 1st...what do you think this shit has been going like absolute hell since the 2nd?

Thu, 03/31/2011 - 11:06 | 1121415 AlaricBalth
AlaricBalth's picture

Here are links to the Federal Reserves collateral guidelines in .PDF and a risk collateral margin table in Excel format. The Fed uses an "internal fair market value estimate" when determining the loan amount to the requesting institution. If you notice on page 9 of the .PDF, none of the loans, inclusive of mortgages, which are pledged as collateral for a discount window borrowing can be more than 60 days past due. I wonder if they bent the rules a bit on that one?

http://www.frbdiscountwindow.org/FRcollguidelines.pdf?hdrID=21&dtlID=81

http://www.frbdiscountwindow.org/discountmargins.cfm?hdrID=21&dtlID=83

Thu, 03/31/2011 - 11:11 | 1121422 bugs_
bugs_'s picture

our money, they got

Thu, 03/31/2011 - 11:50 | 1121427 Ace Ventura
Ace Ventura's picture

Bloomberg just showed two european banks (one Belgian and one with ties to Ireland?) both received in excess of $25 billion from the Fed. The obvious question the Bloomberg bobbledome asked was:

"If these european banks have received bailout money from the ECB (@50 billion euro), why are they also receiving bailout money from the Fed?"

I had to chuckle....apparently the bobbledomes on FTV don't get it yet.

P.S. Just imagine people....this is the data TPTB are ALLOWING you to see.

Thu, 03/31/2011 - 11:34 | 1121526 Lord Blankcheck
Lord Blankcheck's picture

Gods work requires no collateral

Thu, 03/31/2011 - 12:00 | 1121572 Battleaxe
Battleaxe's picture

Wreckless bank, "I'll take $100 billion .... and a shamrock shake."

 

McDonalds girl Ben, "Do you want fries with that?"

 

I am in love with the McDonalds girl....

Thu, 03/31/2011 - 13:29 | 1121975 Racer
Racer's picture

I have now seen it all...

The Fed MUST be ended

"Fed's Tarullo says bubbles, excessive leverage, crises, cannot be prevented , regulation aimed at reducing incidence, limiting severity"

bubbles, excessive leverage, crises caused by the Fed

increasing incidence, increasing severity... The Fed again causes

Wed, 05/04/2011 - 22:19 | 1241723 tp123
tp123's picture

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