Fed: safety net is too big
A paper by the Richmond Federal Reserve compares the size of Federal Reserve safety nets between 1999 and 2009 and finds that 58% of financial firm liabilities were protected by the federal safety net in late 2008 compared with 45% in 1999.
The authors attribute the increase in the Fed's safety net to an enlarged portion of banking firm liabilities as the financial market turmoil that began in 2007 led federal government agencies to expand the range of institutions and the types of liabilities
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