Fed’s discount window sees record activity

Lending to commercial banks from the Federal Reserve’s discount window hit record levels this week as frozen credit conditions prevented financial institutions from providing loans to one another, according to a report issued yesterday by the Federal Reserve.

Total direct lending from the Fed was $441.4 billion as of Wednesday, up from $430.9 billion the previous week, according to the report.

Lending through the central bank’s primary credit facility rose to $101.9 billion from $98.1 billion the week ending Oct. 8, with average daily borrowing rising to $131.1 billion from $75 billion.

The Fed’s primary dealer credit facility, created in March for investment banks following the collapse of The Bear Stearns Cos. Inc. of New York, jumped to $133.9 billion from $122.9 billion the previous week.

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