Liquidity Provision Quotes

In a financial crisis, only the Fed, as the lender of last resort, might stand between our economy and financial catastrophe. We must leave the Fed with the flexibility to provide liquidity in order to stop a financial panic.

I support the Volcker rule, but there needs to be proper definitions around the Volcker rule so that banks can understand exactly what they can do and what they can't do, and that they can provide the necessary function of liquidity in customer markets.

All the Federal Reserve can do is make loans against collateral.

The Bank of England should lend in times of internal panic as freely and readily as plain principles of banking require.

There is much more good gained from having a fully functioning financial market than there ever is not having that.

Using tax payers' money to provide liquidity to Wall Street so that the country wouldn't head into a depression was the right decision, in my judgment.

When the last history of high-frequency trading is written, Hunsader, like Joe Saluzzi and Sal Arnuk of Themis Trading, deserves a prominent place in it.

To be sure, the provision of liquidity alone can by no means solve the problems of credit risk and credit losses; but it can reduce liquidity premiums, help restore the confidence of investors, and thus promote stability.

The first priority is to make sure we have capital to continue to have capital available to put into the financial system. That's the first priority.

The very existence the Federal Reserve System is a safeguard against anything like a calamity growing out of money rates …. We have the power to deal with such an emergency instantly by flooding the street with money.

The Federal Reserve has never suffered any losses in the course of its normal lending to banks and, now, to primary dealers.

Regulatory changes have forced banks to closely examine their liquidity planning and to internalize the costs of liquidity provision. The costs of committed liquidity facilities will be passed on to clearing members. These costs are perhaps highest in clearing Treasury securities, where liquidity needs can be especially large.