Financial institutions took billions in short-term loans this week from the Federal Reserve as the industry copes with a serious crisis of confidence and liquidity, the central bank reported Thursday. Utilizing tools the Fed rolled out Sunday, banks looking for cash infusions borrowed $11.9 billion from the Bank Term Funding Program. Under that facility, banks can take one-year loans under favorable terms in exchange for high-quality collateral. Most banks took the more traditional route, using the Fed’s discount window under terms slightly less favorable, with borrowing rising by $148.2 billion for the week. The ... (full story)