It also eliminated investor pressure for better disclosure, contributing to today's broken markets. Progress has been made, including the Financial Stability Forum's bank disclosure template and the Bank of Canada's disclosure requirements for asset-backed commercial paper pledged as collateral. Ultimately, if investors are truly doing their credit homework, they will demand better disclosure. Otherwise, they will again pay the price.
On August 17, the Federal Reserve Board announced a cut in the discount rate of 50 basis points and adjustments to the Reserve Banks' usual discount window practices to facilitate the provision of term financing for as long as thirty days, renewable by the borrower.