JPMORGAN CHASE, BANK OF AMERICA and WACHOVIA encourage use of FED Discount Window
New York, NY and Charlotte, NC.- JPMorgan Chase & Co. (NYSE: JPM), Bank of America Corporation (NYSE: BAC) and Wachovia Corporation (NYSE: WB) jointly announced today that they have made use, on a limited basis, of the discount window facility announced by the Federal Reserve Board late last week. In transactions intended to display the effectiveness of the facility, JPMorgan Chase, Bank of America and Wachovia each borrowed $500 million, including some on a term basis, at the discount window.
While JPMorgan Chase, Bank of America and Wachovia each have substantial liquidity and the capacity to borrow money elsewhere on more favorable terms, the companies believe it is important at this time to take a leadership role in demonstrating the potential value of the Fedís primary credit facility and to encourage its use by other financial institutions.
The Federal Reserve Board has made clear that it considers the appropriate use of the discount window a sign of strength. JPMorgan Chase, Bank of America and Wachovia hope their actions today will highlight that point for the financial community and promote broad acceptance of the use of the facility.
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