The Quiet Revolution in How We Rescue Banks
Odd Lots
Bloomberg
4.5 • 2K Ratings
🗓️ 15 February 2024
⏱️ 46 minutes
🧾️ Download transcript
Summary
A little less than a year ago, the US financial system was rocked by its first major banking drama since 2008. While the crisis was eventually contained, and only three lenders ended up collapsing, the experience re-ignited an ongoing conversation about the way we rescue troubled lenders. Not only did the Federal Reserve launch a new liquidity program called the Bank Term Funding Program as part of its support to the banking system in 2023, but regulators are now talking about changing existing facilities, including the Federal Home Loan Banks (FHLBs) and the discount window. For instance, Michael Hsu of the Office of the Comptroller of the Currency's has proposed that banks be required to tap the discount window and "pre-position" collateral at the facility, just in case they one day need it. In this episode, we speak with Steven Kelly, associate director of research at the Yale University Program on Financial Stability, about the constellation of existing emergency facilities for banks, how they've evolved over time, and the changes that could be made to them now.
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| 0:44.8 | Bloomberg Audio Studios |
| 0:49.8 | Podcasts, radio news. Radio News. |
| 0:53.0 | Hello. Hello and |
| 0:55.0 | Hello and |
| 0:58.0 | Hello and I'm Joe Wiesenthall. |
| 1:05.0 | I'm Tracy Allaway. |
| 1:08.0 | And I'm Joe Wiesenthall. |
| 1:09.0 | Joe, do you remember what we were doing this time last year. No, not really. |
| 1:15.0 | I should say around this time last year. |
| 1:18.0 | But yes, I can't really even remember last week at this point, |
| 1:22.0 | but in the middle of January, we recorded an episode on the discount. |
| 1:27.0 | Yeah. Oh, on the discount window. Yes, I do. Why were we talking about the discount window? |
... |
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