The Federal Reserve has stepped up scrutiny of investment banks and their potential writedowns in the wake of the credit crunch
Accountancy Age, 10 Apr 2008
The central bank argues that if it is to act as the lender of last resort to the securities firms, it should keep a closer eye on their financial condition.
Last week its staff were in Goldman Sachs, Morgan Stanley, Merrill Lynch and Lehman Brothers' offices to look at their lending and trading policies plus their levels of capital.
The Fed's visits follow hot on the heels of US Treasury Secretary, Henry Paulson's proposals that the central bank become the financial industry's 'risk czar'.
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