WASHINGTON (Reuters) - It wasn’t just Wall Street and the financial services sector that leaned on the U.S. Federal Reserve during the financial crisis.
Harley-Davidson Inc, Verizon Communications, McDonald’s Corp and the Republic of Korea also sought help from the Fed, according to data released by the central bank on Wednesday.
From October 2008 through mid 2009, Harley Davidson tapped the Fed’s Commercial Paper Funding Facility 32 times while South Korea did 41 times.
Lehman Brothers’ bankruptcy in September of 2008 froze the commercial paper market, a crucial source for many companies in funding their day-to-day operations.
The Fed set up the facility in an effort to backstop U.S. issuers of commercial paper and help create more credit for businesses and households.
More traditional lenders such as Bank of America, Citigroup Inc, Barclays and BNP Paribas were some of the heaviest users of the facility, according to the data. Meanwhile, Goldman Sachs was one of the smallest.
The Fed shut down the facility in February 2010.
Reporting by Rachelle Younglai; Editing by James Dalgleish