Numerous commentaries have questioned both the legality and appropriateness of Federal Reserve lending to banks during the recent financial crisis. This article addresses two questions motivated by such commentary: 1) Did the Federal Reserve violate either the letter or spirit of the law by...

In recent years, policymakers in the Basel countries have begun exploring strategies for harnessing financial markets to contain bank risk. As part of this effort, we measure the potential contribution of jumbo CD yields and runoff (withdrawals) to off-site surveillance. Specifically, we rank...