Banks Rely on Fed Crisis Lending Programs for Record-Breaking Support

Banks borrowed a record-breaking $160 billion from the Federal Reserve's emergency lending programs this week, with $11.9 billion from the new Bank Term Funding Program and $152.8 billion from the discount window. The emergency lending comes after the collapse of Silicon Valley Bank, which saw a bank run after investing in long-term U.S. Treasury bonds and other mortgage-backed securities. The lending programs will allow banks to borrow against those bonds should customers wish to make withdrawals, rather than sell them at a loss. The Fed also lent $143 billion to support the deposit guarantees at SVB and another bank that collapsed, Signature Bank.