Wall Street firms reduce, banks step up Fed loans (AP)

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scaled back their borrowing from the Federal Reserve's emergency lending program over the past week, while commercial banks stepped it up.

A Fed report released Thursday said the investment firms averaged $6.1 billion in daily borrowing for the week ending June 25. That compared with $8.6 billion the previous week.

The investment houses were given similar loan privileges as commercial banks in March after a run on Bear Stearns pushed the nation's fifth-largest investment bank to the brink of bankruptcy and raised fears that other Wall Street firms might be in jeopardy.



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