[Joe Miner]

Four large banks went to the Fed Discount window and borrowed billions at 5.75%. Usually, this is seen as a sign of potential bank problems. At the very least, it does not inspire confidence; however, almost immediately the DJI, NASDAQ or indices soared.

Go figure.

NEW YORK (Reuters) - Citigroup, Bank of America Corp. and three other top banks took the rare step of borrowing more than $2 billion total from the U.S. Federal Reserve, the banks said on Wednesday, in a bid to reassure markets and remove the stigma of getting short-term financing from the central bank.

...

Borrowing money directly from the Fed has historically been seen as a sign of weakness, but Bank of America, Germany's Deutsche Bank JPMorgan Chase & Co, and Wachovia Corp said they did it for the sake of the financial system. All five banks emphasized they have access to other, cheaper funds.

...

"The psychology is, if a bank needs to borrow from the discount window, and they think there's a stigma attached to it, they can say, 'Citi has done it, too,'" said Robert Albertson, chief strategist at Sandler O'Neill in New York.

Top international banks tap Fed discount window

[Oystir]

Merrill Lynch today said Citi has no sub-prime problems and gave it a “buy” rating.

[College Repub]

That sounds kind of bogus to me. Unless these banks plan to repay the money very quickly.