by Tanta on 12/20/2007 09:23:00 AM

From the New York Times:

The Federal Reserve said on Wednesday that it had collected bids from 93 financial institutions in its first auction of short-term credit, a turnout that suggested banks might be more inclined to borrow from the Fed under its auction-based system.

Banks have typically feared negative reactions from investors when borrowing directly from the Fed, which some interpret as a sign of weakness. The auction, announced last week, tries to combat that stigma by offering banks the opportunity to borrow directly from the central bank in an anonymous forum and at a lower-than-usual interest rate.

God, grant me the capital to accept the things I cannot change; the reserves to change the things I can; and the Fed Auction when all that blows up. Amen.