US Central Borrowed from Federal Lending Fund
U.S. Central Corporate Federal Credit Union tapped the Federal Reserve's emergency loan fund at least four times from July through September 2008, according to data released by the Federal Reserve.
The data, which was released by the Fed as required by the financial overhaul bill, showed U.S. Central borrowed $10.5 billion from the Federal Reserve's Term Auction Facility, a special fund created to pump liquidity into financial institutions during the height of the financial crisis.
The troubled corporate credit union, which was eventually conserved by the NCUA, borrowed the funds in amounts ranging from $500 million to $5 billion.
The loans were eventually replaced by a loan from the Central Liquidity Facility.
U.S. Central borrowed $500 million on July 17, $5 billion on Aug. 14, $2 billion on Aug. 28 and $2.5 billion on Sept. 11. The interest rates for the loans, most of which were for 28 days, ranged from 2.3% to 2.5%.
The loans were eventually replaced by a loan from the NCUA's System Investment Program. Under that program, natural person credit unions borrowed money from the Central Liquidity Facility which was invested into the corporate credit union system.
The Fed made loans through 21 different programs and at one time had $1.5 trillion in outstanding credit on its books.
To see the data, go to: http://www.federalreserve.gov/newsevents/files/taf.xls