Fed Goes to Brokerages to Monitor Their State: WSJ
The Federal Reserve has stationed itself inside brokerages including Goldman Sachs and Bear Stearns to monitor their financial state, the Wall Street Journal reported on its Web site on Thursday.
The move, which is the first such step by the Fed in over 10 years, is connected to its recent decision to loan money to Wall Street firms and may be the start of extra regulation for them and a wider role for the central bank, the report said.
According to the Journal, the Fed's decision comes amid criticism of the U.S. Securities and Exchange Commission and its oversight of Bear Stearns before its collapse.
Other brokerages that will also see Fed staff on site are Morgan Stanley , Lehman Brothers , Merrill Lynch and JPMorgan Chase , the report said.
None of the firms could be reached immediately for comment.