Several large investment banks have taken advantage of easier lending terms from central banks, aimed at increasing liquidity in the wake of the subprime crisis.
Citigroup, JPMorgan, Bank of America and Wachovia each borrowed $500 million from the Federal Reserve's discount window, announced on August 17. The Fed cut its discount rate by 50 basis points to 5.75%, and extended term financing to 30 days. All four banks have taken an unspecified amount of term financing.
Three of the banks said that