What Legal Authority Does the Fed Need During a Financial Crisis?

32 Pages Posted: 27 Jan 2016 Last revised: 2 Feb 2016

See all articles by Eric A. Posner

Eric A. Posner

University of Chicago - Law School

Date Written: January 22, 2016


The financial crisis of 2007-2008 exposed gaps in the law that authorizes federal agencies to provide emergency liquidity support. This essay describes the ways in which legal constraints hampered response to the crisis, proposes reforms that would make possible a unified and strong response, and criticizes the Dodd-Frank Act for weakening, rather than strengthening, the crisis-response agencies.

Suggested Citation

Posner, Eric A., What Legal Authority Does the Fed Need During a Financial Crisis? (January 22, 2016). University of Chicago Coase-Sandor Institute for Law & Economics Research Paper No. 741, U of Chicago, Public Law Working Paper No. 560, Available at SSRN: https://ssrn.com/abstract=2723524 or http://dx.doi.org/10.2139/ssrn.2723524

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