DSX Lover

Banking Breadline: The Discount Window

Nobody is lining up at the Banking Window to obtain cash. Out of those $33.14 Billion $30 where lend to JPM Morgan, for the BSC takeover. If you take down $30 from $45.14 Billion thats a miniscule 15.14 Billion, that Banks have borrowed from the Discount window which is nothing compared to total US Debt of $48 Trillion. Banks have excess liquidity, and whoever is borrowing is doing so in order to take advantage of low rates, with Commercial Bank Funding being reduced to less than 2% which is what they are paying on CD's now, the Discount window is not really an option, or a need for them. Investment banks are in a different category, because they're structure is different, so they can borrow from the discount window, and buy Fixed Income securities that yield more than double the cost of funds.