Bloomberg just now

[MsDoodahs]

they said that FOREIGN BANKS are borrowing at the Fed Window like CRAZY.

Is OUR MONEY always available for foreign banks?

Is this new?

If new, when did we make that new law?

[surf]

any bank that does business in the US (takes deposits, etc.) is a member of FRB system, uses the Fed for wires, etc. they must also meet (maintain an average balance in their FRB account) "reserve requirements," based on their deposits.

When i managed a banks portfolio, pledged collateral requirements were stringent for borrowing at the discount window. most used it only as an emergency should some cash or bonds fail (or should calculations be off for the day). and this use was for overnight only. the idea was always to maintain as small a balance at the FRB as possible as these assets basically earned zero. The Fed was never too concerned w/overdrafts during my tenure.