After promising almost since the 2023 crisis to do so, Sen. Mark Warner (D-VA) has introduced legislation designed to force the Federal Reserve’s hand to quickly implement discount-window improvements discussed since it became clear in post-failure analyses that operational challenges accelerated bank failures. The bill also requires the banking agencies to reflect discount-window capacity in their liquidity standards, a change that would make them less onerous even now and perhaps prove necessary under pending requirements for discount-window preparedness that might involve pre-positioned collateral….
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