Wall Street Whispers About Fed's Hand in LTCM Bailout

No public money was used. So goes the official word on the rescue of Long Term Capital Management.

Federal Reserve Chairman Alan Greenspan and New York Fed President William McDonough each reiterated that point during testimony before the House Banking Committee yesterday.

Additionally, the governors of the Federal Reserve Bank of New York reported that discount-window borrowing increased just $125 million for the week ended Sept. 30, a level Fed watchers say is neither unusual nor indicates any untoward activities. ...