More broadly, the act allows the Treasury to recapitalize and stabilize our banking system by purchasing preferred stock in financial institutions. The Capital Purchase Program is voluntary and designed to encourage participation by a broad range of institutions while maintaining the ability of participating institutions to raise private capital. Up to $ billion has been committed to this program.
As I said before, emerging-market economies may occasionally face problems for which timely financial assistance from the Fund would help. But this lending needs to be clearly delineated and constrained if it is to do more good than harm. All of this is to say that we need a fundamental review of the IMF's lending activities.