J.P. Morgan Chase & Co., Bank of America Corp., and Wachovia Corporation jointly announced that they have made use, on a limited basis, of the discount window facility announced by the Federal Reserve Board late last week.

In transactions intended to display the effectiveness of the facility, J.P. Morgan Chase, Bank of America and Wachovia each borrowed US$500 million, including some on a term basis, at the discount window.

The firms said that while they all, “have substantial liquidity and the capacity to borrow money elsewhere on more favorable terms, the companies believe it is important at this time to take a leadership role in demonstrating the potential value of the Fed’s primary credit facility and to encourage its use by other financial institutions.”

The Federal Reserve Board has made clear that it considers the appropriate use of the discount window a sign of strength, they said. J.P. Morgan Chase, Bank of America and Wachovia hope their actions today will highlight that point for the financial community and promote broad acceptance of the use of the facility.

Additionally, Citi announced that, on behalf of clients, its Citibank unit has accessed US$500 million in 30-day term financing under the discount window program announced on Friday by the Federal Reserve Bank of New York.

Citibank says it stands ready to continue to access the discount window as client needs and market conditions warrant. Citi is pleased to inject liquidity into the financial system during times of market stress and to support creditworthy clients.