The Federal Reserve may be about to lose the means by which it rescued firms during the financial crisis , such as it did for securities International Group ( plc ) and Bear Stearns in 2008 . New rules are being finanised that remove some of its emergency lending powers . This move is the result of the 2010 Dodd - Frank amendment which limited the Federal Reserve 's ability to " prop - up " banks . The new rules have caused heated debate in Congress , with some against the notion that the Fed should relinquish its role , regarding emergency lending powers as a critical part of its mandate .
The Federal Reserve may be about to lose the means by which it rescued firms during the financial crisis, such as it did for American International Group (AIG) and Bear Stearns in 2008. New rules are being finanised that remove some of its emergency lending authority. This move is the result of the 2010 Dodd-Frank law which limited the Federal Reserve's ability to "prop-up" banks. The new rules have caused heated discussion in Congress, with some against the idea that the Fed should relinquish its role, regarding emergency lending powers as a critical part of its structure.