New Fed rule limits emergency lending power
Restrictions, which stem from Dodd-Frank Act of 2010, aim to ensure US central bank's aid in a crisis is not used to shore up insolvent firms
Washington
IN the lead-up to the financial crisis of 2008, the US Federal Reserve had the ability to make huge emergency loans to almost any entity it chose, a power it used to help save Wall Street firms from possible collapse.
Now, seven years later, the Fed, under the direction of Congress, has adopted a new rule that would place restrictions on its extraordinary financial powers. The restrictions, which stem from the Dodd-Frank Act of 2010, aim to make sure that the Fed's emergency loans are not used to shore up insolvent firms.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Hong Kong March retail sales down 7%, snapping 15 months of growth
UK public sector productivity goes from bad to worse, ONS data shows
Indonesia central bank says SRBI auction will be held twice a week to attract more inflow
World food prices up in April for second month, says UN agency
Heatwave swells Asia's appetite for air-conditioning
Labour wins UK by-election as Tory PM Sunak stares at more losses