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The trio start planning their most daring feat ever: raiding the Union Depository's gold bullion reserve.
The discount window is normally reserved only for commercial banks and other depository institutions, which in exchange subject themselves to closer scrutiny and stricter capital reserve requirements.
For the first time since the 1930s, the Fed also agreed to let investment banks borrow hundreds of billions of dollars from its discount window, an emergency lending program reserved for commercial banks and other depository institutions.
The current environment, in which depository institutions are flush with excess reserves, has forced policymakers to design a new operational framework for monetary policy implementation.
The conferees also voted to increase the reserve ratio of the Federal Deposit Insurance Corporation, but specified that small depository institutions -- those with less than $10 billion in consolidated assets -- be exempt from paying any increase.
The solution would be to require 100 percent reserves against deposits payable on demand and to separate the depository functions from the lending/investing functions of commercial banks.
Other reserves are socked away in the Philadelphia and Denver mints, the bullion depository at West Point, N.Y., and other places.
American depository institutions hold some $581 billion in various types of government obligations on reserve with the central bank, according to Federal Reserve statistics.
Escorted by the armored division, the documents were taken to Fort Knox, Kentucky, where they were secretly stored in the United States Bullion Depository, a fortified vault-building used to store our country's gold reserves and other precious items.
The book depository.
Germain Depository Institutions Act.
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