Federal Reserve efforts to boost liquidity in the banking system haven’t shown proof of helping the economy and are punishing savers, Alleghany Corp. Chief Executive Officer Weston Hicks wrote to shareholders.
At BNP Paribas SA’s New York trading desk, Julia Coronado, the bank’s chief North America economist, watched as three words helped undermine the Federal Reserve’s latest attempt to aid the U.S. economy: “significant downside risks.”
A European bank that got the most Federal Reserve discount window help during the financial crisis received a total of about $300 billion in loans, guarantees and cash infusions from governments and central banks. It also owned subsidiaries implicated in bid-rigging that prosecutors say defrauded U.S. taxpayers.
Bob Corker, a member of the Senate panel with Federal Reserve oversight authority, said the central bank’s decision to embark on a third round of quantitative easing shows Ben S. Bernanke has “stayed too long.”
A Federal Reserve rule capping debit- card “swipe” fees set by Visa Inc. and MasterCard Inc. would be delayed at least six months under a plan being crafted in the U.S. Senate, said two people with direct knowledge of the talks.
The Federal Reserve may lend $1 trillion to central banks as Europe’s crisis roils markets and erodes confidence in the region’s lenders, Anthony Sanders, a George Mason University finance professor, told Congress.
Ben S. Bernanke is signaling his willingness to double down on a three-year bet that’s failed to revive housing, showing the extent of the Federal Reserve chairman’s effort to wrest a recovery from the deepest recession.