Using the Federal Reserve’s discount window for debtor-in-possession financing during the COVID-19 bankruptcy crisis

This paper outlines how the Federal Reserve can use its non-emergency statutory authority to substantially improve the functioning of debtor-in-possession financing markets during the bankruptcy crisis triggered by the COVID-19 pandemic.  The authors argue that, contrary to restrictions on the Fed’s emergency lending authority in Section 13(3) of the Federal Reserve Act, Section 10B permits … Continue reading Using the Federal Reserve’s discount window for debtor-in-possession financing during the COVID-19 bankruptcy crisis