Reported about 14 hours ago
A recent study from the New York Federal Reserve challenges the long-held belief that banks avoid borrowing from the Fed's discount window due to stigma. The research indicates that it's actually the banks facing the highest risk of failure that are most reluctant to borrow, suggesting that the stigma is more tied to financial weakness than to the act of borrowing itself. The study found that those who utilize the discount window have a lower likelihood of failure, thus proposing that banks should be rewarded rather than stigmatized for seeking assistance.
Source: YAHOO