Citigroup Inc. said it borrowed "on behalf of clients." The others stated that while there is "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 Fed's primary credit facility and to encourage its use by other financial institutions."
According to the Wall Street Journal, Citigroup noted it "stands ready to continue to access the discount window as client needs and market conditions warrant. Citi is pleased to inject liquidity into the financial system during times of market stress and to support creditworthy clients."
The central bank lowered the discount rate, charged on direct Fed loans to banks, to 5.75% from 6.25%, and took steps to encourage banks to borrow from what is known as its discount window, such as lengthening the term of such loans to as long as 30 days from the current one day. At the same time, Fed officials actively invited more borrowing from the central bank.