Deutsche Bank goes to Fed for funds-Financial Times
NEW YORK, Aug 20 (Reuters) - Deutsche Bank (DBKGn.DE) late last week borrowed funds directly from the Federal Reserve via its discount window, a line of direct loans from the U.S. central bank, the Financial Times reported on Monday.
The paper said the move came on Friday, shortly after the Fed delivered an emergency 50-basis-point cut in the discount rate to 5.75 percent to stimulate bank lending and fend off fears of a deeper credit crunch.
The FT said it was unclear how much the bank had borrowed.
Fed officials said they do not comment on individual transactions. Deutsche Bank had no immediate comment on the Financial Times report.
Banks are typically wary of using the Fed's discount window for fear the move will be taken as a sign of trouble, but Fed officials told Wall Street executives last week that there would be no stigma attached to such an operation.
((Reporting by Steven C. Johnson, editing by James Dalgleish; Reuters Messaging: steven.c.johnson.reuters.com@reuters.net; Tel: 646 223 6346)) Keywords: FINANCIAL DEUTSCHE/CREDIT
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