[BfloGuy]

A key reason for the creation of the Fed is that without a central bank, the essential function of providing emergency liquidity and acting as lender of last resort must fall to private bankers.

The mere fact that bankers may require "emergency liquidity" indicates a serious flaw in the banking system that should be fixed, not papered-over with a government agency to save their sorry butts by cheapening the currency.

Any other business goes bankrupt. Why do we so revere the precious banks? I still believe the motives for the Fed's founding were ill-considered and devious.

[Rockingham]

Perhaps emergency liquidity from the Fed to a bank could be conditioned on a provisional voiding of non-salary compensation and shareholder equity, with eleigibility to have some or all restored based on an independent evaluation of the bankers’ conduct.