NEW YORK, Nov 6 (Reuters) - Federal Reserve loans to fund U.S. companies' short-term financing needs under a recently launched commercial paper facility jumped to nearly $243 billion in the latest week, Fed data showed on Thursday.
Banks' direct borrowings from the Federal Reserve at the discount window eased slightly in the latest week from the previous week's record. But the financial sector remained highly reliant on the lender of last resort amid the biggest credit crisis in more than half a century.
Net portfolio holdings of the Fed's Commercial Paper Funding Facility, which is buying three-month top-rated CP to free up this key area of short term lending, were $243.31 billion as of Nov. 5, up from $144.81 billion on Oct. 29.
"Other credit extensions," mostly reflecting loans to insurer AIG, were $81.22 billion as of Nov. 5, versus $83.55 billion as of Oct. 29.

(Reporting by John Parry; Editing by Dan Grebler); Keywords: USA FED/DISCOUNT (John.Parry@thomsonreuters.com ; +1 646 223 6303; Reuters Messaging: john.parry.reuters.com@reuters.net)

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