Friday, April 1, 2011

BofA (BAC) Used Fed Discount Window More Than Admitted

Documents released Thursday revealed Bank of America (NYSE:BAC) used the discount window of the Federal Reserve more than they admitted to in the past.

After borrowing $500 million on August 22, 2007, the giant bank borrowed the same amount on the 23rd and 24th; two dates and amounts they hadn't admitted to. The August 22 amount and date had been communicated by the financial institution before.

Jerry Dubrowski, a spokesman for Bank of America, said, “We participated at the request of the Federal Reserve to help stabilize the global banking system in a period of unprecedented stress. At the time we were participating, we weren't experiencing liquidity issues.”

This is the first time since the formation of the Federal Reserve in 1914 that they had to reveal who used the discount window, as they were forced to release the documents after a Freedom of Information Act filing.

Bank of America closed Thursday at $13.33, falling $0.12, or 0.89 percent.

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