Critique of "The Fed’s Crisis Lending: A Billion Here, a Thousand There"

The Federal Reserve is every smaller banks “big brother”. In the economic crisis of 2008, the Fed loaned to banks and lenders all over the world to help keep them afloat. Not every bank borrowed a lot of money. A small bank in Florida borrowed only $1,000 and paid it back the very next day. Other banks were not so fortunate, and borrowed millions. Recently, the data of the discount window was published. It showed how often every bank borrows and how much they borrow. I do not agree with the name of the bank being published. This will discourage the banks from borrowing, possible when they are in a serious crisis. The data is good to look at, but it should be anonymous, and maybe just the country of the bank. Many banks, large and small, need these loans to help as a safety net, and they will be discouraged to do so. If the larger banks don’t borrow from the Fed, then it makes it impossible for smaller banks to borrow from the larger banks. The Fed offering a discount rate to the commercial banks is really a benefit for both the smaller bank and the Fed. I think the original post should have included how not every bank can get a loan. In the article it stated that a small Vermont companies and other places across the country have good credit and still weren’t able to receive a small loan. They continue to loan money to those big banks that are billions of dollars in debt. I am assuming this is because they are a bigger bank and they must provide for smaller banks but it just doesn’t really make sense to me why they would loan to someone who already is in debt either from them, or from another bank, when there are smaller banks all over who just need a safety net. Overall I think the original post was a good summary of the article. I would have liked to read more about what the author of the post thought. It was a good overview of how the Fed works with the discount window, definitely not how they work otherwise. I don’t think the discount window should be published with bank names. This will cause discouragement in borrowing all over the world and will end up hurting the Fed in the long run because no one will be borrowing from them so they cannot get any interest back. http://www.nytimes.com/2011/04/01/business/economy/01fed.html?_r=3&adxnnl=1&ref=business&adxnnlx=1302879730-vT5TgyflLJNB22enXRhS9g