http://www.ft.com/…

Banks and investment banks whose health is crucial to the global financial system should operate under a unified regulatory framework with “appropriate requirements for capital and liquidity”, according to Timothy Geithner, president of the Federal Reserve Bank of New York.Writing in Monday’s Financial Times, Mr Geithner, a key US policymaker throughout the credit crisis and one of the main architects of the rescue of Bear Stearns, says that the US Federal Reserve should play a “central role” in the new regulatory framework, working closely with supervisors in the US and round the world.

In his speech, Mr Geithner will also say the Fed is examining whether to make “permanent” some of the new liquidity facilities put in place during the credit crisis, and called for central banks to establish a “standing network of currency swaps, collateral policies and account arrangements” to bolster liquidity during a future crisis.

So when they screwup, which is all the time, they directly instead of indirectly effect everyone on the planet. Wonderful…

Related posts:

1. Lord Keynes would be proud: Federal Reserve System acting as world central bank to foreign central banks
2. Henry Kaufman: Federal Reserve led astray by libertarian dogma
3. Fed looks to socialists for more ideas to centralize the US economy
4. H.R. 2755: Federal Reserve Board Abolition Act
5. Regardless of what Congress does the Fed continues on

This entry was posted on Monday, June 9th, 2008 at 4:15 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.