Exact(2)
Administration officials say that they frequently refer to Washington's experience in thawing the credit squeeze and backstopping financial markets after the failure of Lehman Brothers in September 2008.
The policy actions taken by the G-20 countries and others including aggressive fiscal and monetary stimulus, increased funding to the IMF and backstopping financial systems globally–helped stop the economic freefall.
Similar(57)
In theory, the funds committed for everything from the bailouts of Fannie Mae and Freddie Mac and those of the Wall Street firm Bear Stearns and the insurer American International Group, to the financial rescue package approved by Congress, to providing guarantees to backstop selected financial markets is a very big number indeed: an estimated $5.1 trillion.
In making clear that it would backstop the financial system, and in going to great lengths to explain its various emergency-lending programs, the Fed helped stop the panic and prevent a meltdown.
In 2008 and 2009, the decisions by these governments to do "whatever it takes" to backstop their financial systems and keep their economies afloat soothed investor concerns.
3. The U.S. realizes government must fully backstop its financial system, but Germany balks, traumatized by the memory of hyperinflation in the 1920s.
Even as critics have accused the Fed of being less than forthcoming, few people claim that the central bank did the wrong thing by stepping in to backstop a financial system that seemed to be on the verge of imploding.
Backstopping the rest of the financial system without regulation was an invitation to excess.
Moreover, backstopping the liquidity needs of financial institutions reduces funding stresses and, all else equal, should increase the willingness of those institutions to lend and make markets.
Of all the problems that plague TARP -- including its lack of transparency and disclosure, shifting goalposts, and an unclear purpose -- there's one that has government auditors most concerned: the administration's failure to articulate how it's going to eliminate the implicit taxpayer-funded guarantees backstopping the nation's biggest financial firms.
There has been growing conflict between Europe's leaders over whether the euro zone should work alone to create a backstop of financial support for the country should it fail to raise the money it needs to refinance its debts, or invite the International Monetary Fund to offer financing and consequently dent confidence in the euro.
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