FILE PHOTO: An eagle tops the U.S. Federal Reserve building’s facade in Washington, July 31, 2013. REUTERS/Jonathan Ernst/File Photo
NEW YORK (Reuters) – The Federal Reserve said on Thursday that credit it has extended to help wind down failed banks marked a big drop in the latest week.
The Fed reported what it calls “other credit” fell to $63.07 billion on Wednesday, from $81.9 billion on Sept. 27. The credit is being used by the Federal Deposit Insurance Corporation to deal with bank failures from the spring.
This type of credit stood at zero at the start of March, peaked at $228.2 billion on May 3, and has been falling by a notable amount since the middle of September.