The total of $279 billion is very high.
Note the seven day was higher than the one day, which could mean the longer term offerings will attract even more borrowers.
This is a lot of lending for the Fed to be doing to the ECB.
It also moves the USD debt in the Eurozone from the private sector to the public sector.
The private sector can default, declare insolvency, get ‘reorganized’, where the USD debt can be ‘converted’ to equity and functionally vanish, all to be written off by the creditors.
Public sector external debt doesn’t have that option, and thereby introduces systemic risk.
If the Eurobanks can’t/don’t repay the ECB, the Fed is left with the option of selling euros for USD for repayment.
And only if the ECB survives as a political entity.
It is not guaranteed by the national governments.
The ECB today offered banks unlimited dollar funds for seven days in the first tender of its kind, lending $170.9 billion. It also loaned an additional $100 billion for one day.