Fed adopts new rule limiting ‘too big to fail’ bailouts

Amid pressure from Congress to rein in its power to prop up a troubled financial institution, the Federal Reserve did just that Monday, adopting a new rule that will limit its ability to bail out failing financial institutions.

The Fed announced Monday that its board of governors approved a final rule for its “emergency lending” program, criticized by some as establishing that there are some banks that are simply “too big to fail.”

Read on.

 

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