Fischer Says Fed Still Able to Help Banks Facing a Crisis
- Vice chairman cites stigma of borrowing from discount window
- Yellen responds to lawmaker's grilling on lending authority
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U.S. regulators still have the power to help banks facing a funding squeeze even as the stigma for lenders seeking emergency cash has increased in recent years, Federal Reserve Vice Chairman Stanley Fischer said.
"U.S. financial agencies collectively have substantial lender-of-last resort authorities to meet future contingencies," Fischer said in remarks during a speech in Washington on Wednesday. The Fed "maintains the ability to provide liquidity to markets during times of unusual financial stress, including the authority to lend to insured depository institutions," he said.