Fed's Dudley floats even broader revamp of wholesale funding
February 2, 2013 1:00 AM EST
The United States could adopt even broader reforms of the wholesale funding markets than currently being considered, including forcing firms to rely more on longer-term funding or expanding the U.S. Federal Reserve's backstop, an influential Fed official said on Friday.
New York Fed President William Dudley warned that extensive activity in the money markets and tri-party repo markets takes place without proper safeguards against runs and fire sales, and he urged U.S. lawmakers to take a closer look.
Without endorsing a particular path, he suggested the government could curtail short-term wholesale finance, dissuading financial institutions from using such funding, or it could decide to extend access to the Fed's discount window to firms that are "much more socially useful than others."
"Regardless of where we come out on these questions, we must make the basic structure of the wholesale funding market as sound as possible," Dudley told the New York Bankers Association, according to prepared remarks.
"Thus, we must push ahead with tri-party and money fund reform."
(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama)
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Celebrities Who Got Pregnant Using IVF: Busting the Myths About IVF
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Apple iPhone 6 Release Date Update: 6 Most Wanted Feature Upgrades for Next iPhone
- Moto X Android 4.4.4 KitKat Update Guide: Schedule and How to Install
- Top 4 Reasons Why iPhone 6 Will Hit Big Soon After its Sept 2014 Release Date
- Top Surprising Features Of iOS 8
- Twin Malaysia Airlines MH370, MH17 Aviation Disasters Create Phobia Among Travellers
- HTC One M8 Windows Phone to Launch for Verizon; Release Date, Price, Five Fresh Features to Anticipate for New Smartphone
- OnePlus One vs. Moto X+1 – Early Specifications, Release Date and Price Faceoff