Lawyers
Financial Services Group Co-Chair Jarryd Anderson spoke with The Wall Street Journal about regulators’ plans to require banks to be better prepared to tap into an emergency central bank facility known as the “discount window”—a last-resort liquidity source that can help prevent or slow bank failures. In addition to chipping away at the stigma of using the discount window, the Federal Reserve and two other agencies hope to make the system easier for banks to use. In “A Century-Old Lending Lifeline for Troubled Banks Has a Major Flaw. The Fed Wants to Fix It,” published on April 19, Jarryd notes that updates to the window’s functionality are long overdue.
“Because the discount window is generally used during periods of stress, there hasn’t historically been the same demand for automation and technological improvements to increase its efficiency in the same way there has been for other financial functions, such as the payments system,” Jarryd says.
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