A surprisingly sophisticated set of questions from Sen. Bunning to Bernanke gets a typically evasive set of answers. This is worth checking out: http://bunning.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=3b088771-e7e3-4ade-94a8-bbe9d75cfe15 ---------------------------------------------------------------------------snip The detailed information you have requested regarding participation in Federal Reserve’s broadbased lending programs would significantly undermine the usefulness of such programs. The critical purpose of these programs is to provide institutions that have temporary liquidity needs with a means to meet those needs by coming to the Federal Reserve. Releasing the names of institutions that borrow would stigmatize such borrowing, making firms less willing to come to the Federal Reserve and so make it more difficult for the Federal Reserve to respond to financial market strains. Moreover the Federal Reserve has been highly responsible in its use of these programs. For example, our discount window loans are fully collateralized, and we have never lost a penny on such operations. Likewise, the loans made under section 13(3) have been fully secured. We provide extensive information regarding the number of institutions to which we are lending under each of our credit programs, and the type of collateral we have accepted, on our website, as well as information on exemptions granted under sections 23A and 23B of the Federal Reserve Act.
-raghu. -- "Have you ever noticed? Anybody driving slower than you is an idiot, and anyone driving faster is a maniac?" _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
