Three months ago, the FOMC approved the establishment of the Primary Dealer Credit Facility (PDCF). This action was taken pursuant to Section 13(3) of the Federal Reserve Act, which empowers the Board of Governors of the Federal Reserve to authorize a Federal Reserve Bank to lend to a corporation, including a securities firm, in “unusual and exigent” circumstances when the corporation cannot “secure adequate credit accommodations from other banking institutions.”
At that time, the Board of Governors made the “necessary” statutory Read the rest of this entry ?
