Fed Recalls Extra Y2K Cash

- WASHINGTON (01/05/00) - Armored trucks stuffedwith cash were lining up at Federal Reserve banks around thecountry over the past few days as the Fed withdrew billions ofdollars in excess currency distributed in the event of a run oncash by depositors panicked over Y2K. The Fed had disbursed morethan $80 billion in the fourth quarter, almost four times theamount distributed in the fourth quarter of 1998, to make surebanks, credit unions and other depository institutions hadplentiful cash for withdrawals. But Fed officials said there waslittle evidence of major withdrawals over the Y2K weekend asdepositors around the country appeared to be satisfied withrepeated messages that their banks and credit unions were ready forthe Y2K rollover. The Fed reported that fewer than a dozen bankswent to its discount window to ask for special liquidity loans overthe weekend. NCUA reported about 60 credit unions requested shortterm liquidity loans from its Central Liquidity Facility(CLF).