Lehman (LEH) and Goldman (GS) Tap Previously Off-Limit Fed Discount Window

CNBC reported that Lehman Brothers (NYSE: LEH) and Goldman Sachs (NYSE: GS) used the Federal Reserve discount window late yesterday. The news follows new rules from the Fed which will give primary dealers access to the window.

The new Fed plan will be in place for at least six months and may be extended as conditions warrant. Credit extended to primary dealers under this facility may be collateralized by a broad range of investment-grade debt securities. The interest rate charged on such credit will be the same as the primary credit rate, or discount rate, at the Federal Reserve Bank of New York.

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