Besides issuing a public statement that the discount window was available to provide liquidity, Federal Reserve officials contacted senior managers of major banks - many of whom had ongoing relationships with the Fed as the result of supervisory interactions - to discuss the situation.
These discussions encouraged the banks, when it was consistent with appropriate risk management, to make credit available to securities firms, allowing them to make necessary payments and avoiding possible payment gridlock (SEC, 1988; Greenspan, 1994).