Confirmation Hearing:More About Mary Schapiro

Senator Jack Reed(D-Rhode Island)praised Mary Schapiro,Chairman-designate of the Securities and Exchange Commission,at her confirmation hearing last week,expressing his complete confidence in her.For his part,Senator Charles Schumer(D-New York) said he was deeply impressed by the depth of Ms.Schapiro's experience and knowledge.Ms.Schapiro smiled readily at the senators.Her husband and two daughters,Anna and Molly,sat behind her at the hearing.Dressed in blue with a gold lapel pin,she said she grew up in New York,a short train ride from Manhattan,the daughter of a printer and a librarian.

Lehman Goes To Window

Lehman Brothers(LEH),one of the 20 Primary Dealers,has gone to the Federal Reserve's discount window for these firms,or Primary Dealer Credit Facility.At this window,the Fed is taking a broad range of collateral in exchange for cash.Assets accepted include mortgage-backed securities,municipal and corporate bonds,as well as collateralized debt obligations.The assets must be rated investment grade by at least two credit rating agencies and have market prices.The dealers get 95.00 U.S. for every 100.00 of collateral they submit.The transaction goes through a clearing bank such as Bank of New York Mellon(BK),where the collateral is deposited and the cash handed over.The Federal Reserve opened the window to dealers in order to prevent further cash flow problems.On 16 March,Bear Stearns(BSC) was on the brink of bankruptcy when it lost the confidence of partners and clients.Now the dealers can shore up their finances as needed,so long as they have the collateral to put up for the loans.