4.16: Credit to Banks
Be prepared, if necessary, for broader assurances for credit to banks. Other Information:
First, we must be prepared to provide additional, temporary assurances to achieve the effective functioning of financial markets.
Depending on developing circumstances, these steps could include additional measures by the Federal Reserve, extending insurance
to all deposits, or guaranteeing a broader range of liabilities of the banking system including overnight loans. Any such
steps should be coordinated internationally where appropriate and feasible. They should be accompanied by additional oversight
to ensure appropriate use of guaranteed funds and by the expectation that financial institutions taking advantage of these
guarantees will raise more capital.
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