Citigroup , Bank of America and other
top banks took the rare step of borrowing $2 billion from the
U.S. Federal Reserve on Wednesday, in a bid to reassure markets
and remove the stigma associated with getting financing from
the central bank.
U.S. shares rose after the move, as the banks’ moves
signaled that battered credit markets may start to heal, though
bank stocks were mixed amid lingering concern about mortgages.
Borrowing money directly from the Fed has historically been
seen as a sign of weakness, but Bank of America, JPMorgan Chase
& Co, and Wachovia Corp said they did it for the sake of the
financial system. All four banks emphasized they have access to
other, cheaper funds.
Here is the story. I don’t know if this will work, but it is a neat trick. Imagine that you, as a smart person, went around saying stupid things, in an attempt to limit discrimination against the stupid. You can come up with other analogies of your own.