New Fed discount window could ease bankruptcy crisis – researchers
Many companies may not endure a further liquidity shock
The Federal Reserve should establish a new special-purpose discount window to support bank lending to companies in distress, economic historian Peter Conti-Brown and corporate law expert David Skeel argue.
A large share of US corporations have interest expenses greater than their cash inflows, separate research published by the Federal Reserve Bank of New York finds. The Covid-19 shock has left many companies in such a weak financial state that they may not be able to endure a further liquidity
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