Investment firms are reducing the amount of money they borrow through the Federal Reserve's emergency lending program.<br><br>WASHINGTON
 (AP) -- Wall Street investment companies are reducing their borrowing 
from the Federal Reserve's emergency lending program.<br><br>The Federal
 Reserve said in a report Thursday that those companies averaged $14.2 
billion in daily borrowing over the past week. That compares with $16.6 
billion in the previous week.<br><br>The program, which began March 17, 
is one of several steps the Fed has taken to help industry and the 
economy overcome the fallout from housing, credit and financial 
troubles.<br><br>After a run on Bear Stearns (BSC, Fortune 500) pushed 
the nation's fifth-largest investment bank to the brink of bankruptcy in
 March, fears grew that others Wall Street firms might be in jeopardy.<br><br>Broad
 use of power: Scrambling to avert a market meltdown, Fed Chairman Ben 
Bernanke and his colleagues invoked the broadest use of the central 
bank's lending power since the 1930s when they agreed in March to let 
investment houses obtain emergency financing from the Fed. That was a 
privilege previously granted only to commercial banks.<br><br>The 
program, similar to one the Fed long has had for commercial banks, will 
continue for at least six months. It gives investment companies a place 
to go for overnight loans. Commercial banks and investment companies now
 pay 2.25% in interest for the loans.<br><br>Banks also reduced their 
borrowing, according to the report. They averaged $13.5 billion in daily
 borrowing for the week ending May 21, compared with $14.4 billion for 
the previous week. The identities of commercial banks and investment 
houses are not released.<br><br>Bernanke recently said turmoil in financial markets has eased somewhat, but the situation is still "far from normal."<br><br>Fed
 auctions: As part of efforts to relieve credit strains, the Fed 
auctioned $46.1 billion in Treasury securities to investment companies 
Thursday. <br><br>The ninth and latest auction drew bids for less than 
the $75 billion available. That could be a sign of some improvement in 
credit conditions.<br><br>In exchange for the 28-day loans of Treasury 
securities, bidding companies can put up as collateral more risky 
investments. These include certain mortgage-backed securities and bonds 
secured by federally guaranteed student loans.<br><br>The auction 
program, which began March 27, is intended to make investment companies 
more inclined to lend to each other. A second goal is providing relief 
to the distressed market for mortgage-linked securities and for student 
loans.<br>