Emergency Lending The Federal Reserve adopted a new rule Monday requiring that every new Fed lending program be designed broadly enough that at least five potential recipients could be eligible to participate. The Fed’s latest rule would curtail the central bank from providing emergency lending to a single failing firm, like AIG, and also would bar the Fed from making loans to insolvent firms. Fed can’t extend emergency lending unless five firms participate The Federal Reserve has long had authority to extend emergency lending to help mitigate extraordinary pressures in financial markets, though it has exercised the authority only sparingly…
Fed Amends Rule To Limit Bank Emergency Lending
Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports
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