Financial Times FT.com

Use of discount window urged

By James Politi in New York and Eoin Callan in Washington

Published: August 18 2007 00:23 | Last updated: August 18 2007 00:23

The top executives of Wall Street’s leading commercial and investment banks gathered on an emergency conference call for about 20 minutes on Friday morning to hear a stern message from the Federal Reserve.

Just after lowering the discount rate – the charge for banks when they borrow money from the government in a pinch – the US central bank told the financial institutions that they should not be shy about using this “discount window” if they needed it.

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