Fed crisis lending programs reveal banks' strength and regulatory gaps.

Banks borrowed billions of dollars from the Federal Reserve this week using the Bank Term Funding Program and the discount window, as the industry faces a crisis of confidence and liquidity. The Fed eased conditions at the discount window to make it more attractive for borrowers in need of operating funds. Bridge loans were also made to now-shuttered institutions so they could meet obligations regarding depositors and other expenses. The programs ramped up the totals on the Fed balance sheet, escalating the total by some $297 billion.