JPMorgan Chase, Bank of America and Wachovia Join Citi in Borrowing $500M Each From Fed

The AP reports:

Four major banks said Wednesday they each borrowed $500 million from the Federal Reserve's discount window, lending weight to its efforts to restore liquidity to tight markets.

Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp. and Wachovia Corp. each stressed they themselves have "substantial liquidity" and the ability to borrow money elsewhere.


In a joint statement, the latter three said they decided to borrow directly from the central bank to demonstrate "the potential value of the Fed's primary credit facility" and encourage its use by other banks. It was not clear if other banks had also decided to borrow from the Fed.

Like they 've never heard of borrowing money from the Fed? Sounds like some institutions are short cash.You haven't heard the last of this story.I guess central banking needs promoters.