Reforming the Federal Reserve’s Rescue Authority

Featuring Senator Elizabeth Warren and Senator David Vitter

View the full event here: https://​www​.cato​.org/​e​v​e​n​t​s​/​r​e​f​o​r​m​i​n​g​-​f​e​d​e​r​a​l​-​r​e​s​e​r​v​e​s​-​r​e​s​c​u​e​-​a​u​t​h​ority

When Congress examined this issue during the Dodd‐​Frank Act, they placed new limits on emergency lending that are contained in Section 1101 of the legislation. These limits are clearly intended to limit 13–3 lending to programs that are truly broad based (as opposed to bailing out a small set of insider Wall Street institutions) and to exclude the use of the program for bailouts of institutions that are actually insolvent. Join us as we discuss whether Dodd-Frank’s limitations to the Fed’s 13–3 powers went too far, or not far enough.