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To: Les H who wrote (32455)	11/5/1999 5:04:00 PM
From: flatsville	Respond to of 99985

biz.yahoo.com Fair Use/etc... Thursday November 4, 10:51 pm Eastern Time Banks draw from special Y2K discount window-Fed NEW YORK, Nov 4 (Reuters) - The Federal Reserve Bank of New York said on Thursday banks had made the first significant borrowings this week from the discount window using special terms set up to handle year-end liquidity needs. The Fed said banks borrowed $210 million on Wednesday at the discount window under the special facility which allows for expanded collateral. Fed officials said it was the first time they had seen ''significant borrowings'' under the facility which was created to address any year-end liquidity problems related to concerns over the Y2K computer bug. Discount window borrowings under the special facility up until now had been minimal, the Fed said. The New York Fed, the U.S. central bank's arm in financial markets, announced in September it will accept a broader array of collateral at its discount window. The bulk of financial markets' daily operations is usually easily financed by borrowing against top-grade collateral -- mostly U.S. Treasuries. Now a broader array of debt instruments may be used as collateral in discount window borrowings. Fears of Y2K computer glitches may make liquidity harder to get or more expensive than usual in the computer-driven banking system. Most major banks and financial institutions have said they have fixed their computer software to eliminate the Y2K glitch, which could prompt some computers to erroneously read the new year as 1900 instead of 2000. The potential glitch stems from programming shortcuts taken on earlier computers with less memory than today's models, when programs included only the final two digits of a year to save memory space.