Wall Street Faces Yellen’s Scrutiny After Fed Debt-Market Rescue
- ‘System only worked because the Fed jumped in,’ an expert says
- Wall Street already pushing back against potential new rules
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The Federal Reserve saved the corporate bond market after it froze last year. Now regulators want Wall Street to pay the price for that rescue, and the industry is already pushing back.
Government officials view the unprecedented steps taken in March 2020 -- the central bank pledged to buy corporate bonds, a promise that got the gears of credit turning again -- as a mandate to address long-standing concerns that bond liquidity disappears in bad times.