Word: rediscounted
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...district and borrow money only on the bonds or other direct obligations of the U. S. Government, on businessmen's promissory notes covering actual commercial transactions and, a minor point, on credits advanced to agricultural agencies. No other kind of security is eligible for the Reserve's rediscount privilege.? Not one nickel will the Reserve lend on the best industrial bonds, on prime stocks or on A-1 real estate mortgages. In its effort to keep liquid to meet depositors' demands, a bank which has exhausted all its assets eligible for Reserve borrowing must dump its other securities...
Tomorrow. To make these other security assets legal collateral for loans from the Federal Reserve is one major aim of the Glass-Steagall bill. By widening rediscount eligibility, its sponsors hope that banks on the brink of failure can fly into the arms of the Federal Reserve instead of into the arms of Federal receivers. The bill provides that five or more independent banks may take their assets, whatever they may be, to their district Reserve bank and ask for a joint cash loan on them. Whether they get it or not will be up to a three-quarter majority...
...must hold in actual gold or gold certificates at least 40% of the amount of its outstanding currency. Likewise behind each dollar of Reserve currency must be 100¢ of commercial paper or of gold or of gold certificates. U. S. Government bonds and other Treasury obligations (although eligible for rediscount at Federal Reserve banks) cannot be used to cover the Reserve's paper money...
...Senate bill carried, however, two amendments which threatened dispute. One was that groups of five or more banks could not apply for new Reserve loans until they had used up all their commercial paper now eligible for rediscount. Senator Glass put in that provision because he claimed large banks were now hoarding $8,500,000,000 in such assets, which should be rediscounted before other securities were offered as collateral. The other amendment provided that only single banks with capital of $500,000 or less could apply for special loans under the "exceptional and exigent" clause of the bill. Senator...
...Rediscount: the process whereby a bank re-borrows from its Federal Reserve bank on U. S. securities or short-term commercial notes to reimburse itself for loans it has already made...