Remembering 9/11: Federal Reserve Raced to Smother Financial Fires | White & Case LLP International Law Firm, Global Law Practice
Remembering 9/11: Federal Reserve Raced to Smother Financial Fires

Remembering 9/11: Federal Reserve Raced to Smother Financial Fires

The Federal Reserve reestablished its role as the "lender of last resort" as US policymakers took swift action to drive liquidity into the US markets in the wake of the 9/11 attacks. Such action sustained the function of the world economy and enabled the seamless reopening of the New York Stock Exchange, led by Dick Grasso, days after the attacks.

"That helped confidence," said Ernie Patrikis, a former Federal Reserve Bank of New York general counsel and now partner at White & Case. "You've got to give a lot of credit to Grasso. The worst thing in the world would have been for the market to open and then crash operationally."