As Applicants Line Up, Is Fed Near Its Limit? [ANALYSIS]

As the Federal Reserve debates whether or not to grant bank status to GMAC Financial Services, analysts contend the central bank risks perverting the traditional bank holding company charter, which was never meant to serve as a safe haven for companies in trouble. (American Banker)

Recent measures taken by the Federal Reserve amid the credit crisis:

• Guaranteed $29 billion of Bear Stearns assets
• Assumed oversight of Goldman Sachs and Morgan Stanley
• Extended a $123 billion loan to American International Group
• Backstopped the money market mutual fund industry
• Bought unlimited amounts of commercial paper

Source: (American Banker)