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Bear Stearns

Experts speculate on unorthodox measures

By Krishna Guha in London and James Politi in Washingtons

Published: March 17 2008 18:58 | Last updated: March 17 2008 18:58

Analysts were on Monday speculating what unorthodox policy measures US policymakers might resort to next following Sunday’s decision by the Federal Reserve to offer emergency financing to all its primary dealers.

The move – which followed the provision of emergency finance to Bear Stearns on an ad hoc basis – expands the central bank’s role as lender of last resort to cover all the big investment banks.

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