Not for you and me, my friend. For Goldman, Merrill, Citi et al, they’ve not only rec’d a 1/2 point cut at the discount window, but a 1/2 point reduction in the fees they pay the Fed to borrow against pledged securities, plus an extension from “overnight” to “thirty days”... pledging the very securities that are underlying this whole stenchy situation. While the Fed has “broad discretion” as to what they will accept as security, I’ve seen no class of securities valued at less than 85% of face.
Neither Goldman nor Merril (nor Bear Stearns nor Morgan Stanley nor Lehman) are allowed to borrow at the discount window. What’s more, the discount window is 50bp above the fed funds rate. That is, it’s a penalty rate still, just less so.