Fed Calls for Backup Clearing Bank in Case of Crisis

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00014246-fed-calls-for-backup-clearing-bank-in-cas/

The Federal Reserve on Thursday endorsed a proposal by an industry working group to establish a dormant backup clearing bank for government securities that could step into the fray in a U.S. banking industry crisis.

The proposed bank would clear and settle U.S. government securities “if a credit or legal problem caused the market to lose confidence in an existing clearing bank, and no well-qualified bank stepped forward to purchase the existing bank’s clearing business,” the Fed said.

For this complete story, please visit Fed calls for backup clearing bank for crisis prep.

Fed Calls for Backup Clearing Bank in Case of Crisis

Unknown Author

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