WASHINGTON — Total direct borrowing from the Federal Reserve's discount window dropped in the latest week.

The Fed in a weekly report issued Friday said total borrowing at its discount window, including both depository institutions and primary dealers, fell to $259.05 billion Wednesday from $288.70 billion in the prior week.

Total average daily borrowing decreased to $283.18 billion from $296.82 billion the prior week.

Lending through the Fed's primary credit facility, used by commercial banks, slipped to $91.73 billion Wednesday, from $92.65 billion last week.

Average daily lending through the primary credit facility rose to $93.63 billion from $91.55 billion the previous week.

Lending through the Fed's primary dealer credit facility, created in March for investment banks following the collapse of Bear Stearns, climbed to $57.89 billion Wednesday from $46.61 billion a week earlier.

Average daily borrowing through that facility increased to $52.42 billion from $50.17 billion the previous week.

Friday's data also indicated that a new Fed facility to shore up the money market mutual fund industry, the Money Market Investor Funding Facility, hasn't been used yet.

The purpose of that facility is to extend credit to a series of limited liability companies that will purchase short-term debt from money funds.

"Such purchases are designed to foster liquidity in short-term money markets," the Fed said.

The Fed data showed the outstanding balance of a loan to insurer American International Group Inc. (AIG) was $55.94 billion. The data also included one new credit facility that's part of the government's revamped loan to American International Group Inc. Under the revised terms announced on Nov. 10, the Fed established a $30 billion facility to purchase collateralized debt obligations on which AIG has written credit default swap contracts.

According to the Fed report, net holdings under that CDO facility, called "Maiden Lane III," totaled $21.1 billion on Wednesday.

The Fed also created a limited liability company with $22.5 billion in funding to purchase residential mortgage-backed securities related to AIG. Credit hasn't yet been extended to that facility, called "Maiden Lane II."

The Fed said Friday that, as of Wednesday, it had provided $53.31 billion in credit through the Boston Fed for a money-market mutual fund liquidity facility. Last Wednesday, the Fed provided $61.92 billion in credit through the facility.

The Fed Friday reported net portfolio holdings of $294.09 billion on Wednesday in connection with its commercial paper purchase program, an increase from $270.88 billion the week before. Purchases under the program started Oct. 27, allowing companies to sell their three-month commercial paper to the Fed. Commercial paper is short-term debt used by corporations to fund their daily operations.

The Fed's holdings of Treasury securities contracted in the week ended Nov. 26 were down by $18 million to $476.407 billion, according to Friday's report.

Average daily borrowing of seasonal credit fell by $4 million in the week to $5 million, according to Friday's report. Seasonal credit borrowing Wednesday stood at $6 million.

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