The Traderszone Network

Published in TZ Latest News 26 May, 2015 by The TZ Newswire Staff

Fed’s Lacker says letting banks fail will restore market discipline

Policymakers must ensure that financial industry creditors do not expect government bailouts and must be willing to let firms fail in order to restore market discipline, a top Federal Reserve official said on Tuesday. The remarks by Jeffrey Lacker, president of the Richmond Federal Reserve Bank, repeated much of what he has previously said about what regulators need to do to make the financial system safer. Lacker, a voting member this year on the Fed’s policy-setting committee, did not discuss monetary policy.