Reuters
Wednesday March 19, 12:12 pm ET
NEW YORK (Reuters) - Investment banks Goldman Sachs Group Inc (NYSE:GS - News), Lehman Brothers Holdings Inc (NYSE:LEH - News) and Morgan Stanley (NYSE:MS - News) are testing a new program that allows investment banks to borrow directly from the Federal Reserve, according to people at the banks.
In a bid to stabilize jittery markets, the Fed said on Sunday that it would allow investment banks to borrow from its discount window using a wide range of investment-grade securities as collateral.
Markets were unstable after a run on the bank at Bear Stearns Cos Inc (NYSE:BSC - News) forced the investment bank to sell itself to JPMorgan Chase & Co (NYSE:JPM - News) at a fire-sale price .... Read the Entire Article
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