Lawmakers Slam Fed's Crisis Lending Proposal

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Lawmakers Slam Fed's Crisis Lending Proposal

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Lawmakers Slam Fed's Crisis Lending Proposal

by Wochit 0:48 mins

Lawmakers Slam Fed's Crisis Lending Proposal

by Wochit 0:48 mins

A bipartisan group of lawmakers on Monday urged the Federal Reserve to restrict its crisis lending programs for big banks, which were criticized as bailouts during the 2007-2009 meltdown. During the crisis, the Fed invoked its emergency lending powers to pump cash into Citigroup, Morgan Stanley and other banks to prevent the global panic from worsening. The 2010 Dodd-Frank law, enacted by Congress to crack down on Wall Street excesses, curtailed those powers.

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