The Federal Reserve said Monday it will adopt new regulations on emergency corporate lending.
Under the new rules, the Fed would prohibit emergency loans to individual companies.
The new regulations also say emergency loans must be made at a penalty rate and also prohibit lending to insolvent firms.
Fed Chair Janet Yellen said the Fed can now only offer broad-based emergency credit.
She also said that, under the new regulations, the central bank would not have been able to bail out Bear Stearns or AIG in 2008.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.