SEC, CFTC oppose giving clearinghouses access to Fed aid

04/29/2010 | Reuters

The heads of the Securities and Exchange Commission and the Commodity Futures Trading Commission oppose giving clearinghouses access to the Federal Reserve's discount window and other assistance. A draft bill from the Senate Agriculture Committee would prohibit clearinghouses from gaining access, conflicting with legislation from the Senate banking committee. "I don't think we should expand the safety net. It generally lowers risk-management standards when you know the government will extend you a line of credit," said CFTC Chairman Gary Gensler. SEC Chairman Mary Schapiro agreed.

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