Cortez Masto, Rounds Push for Fed Discount Window Updates to Prevent Bank Collapses, Protect America’s Financial System

Washington, D.C. - U.S. Senators Catherine Cortez Masto (D-Nev.) and Mike Rounds (R-S.D.) introduced the Bringing the Discount Window Into the 21^st Century Act, which would direct the Federal Reserve to report to Congress on ways they can modernize the discount window and concerns they have identified with the current system. The discount window is the main way the Federal Reserve helps banks manage their liquidity needs.

"As we continue to be the financial hub for the world, America's financial institutions need to ensure they have enough money on hand to meet their needs," said Senator Cortez Masto. "In order to maintain an innovative and robust financial system, it's critical that the infrastructure supporting them, like the discount window, is brought into the 21^st Century."

"The discount window serves as stable source of short-term funds for local banks. This helps stabilize short-term cash in a reliable and accepted format," said Senator Rounds. "Our legislation would strengthen and modernize this tool, helping the discount window work better for institutions when they need it most."

Read the bill here.

Senator Cortez Masto has pushed bipartisan legislation to increase the Federal Deposit Insurance cap on deposit insurance, allow credit unions more flexibility when lending for non-primary residence loans, and reform the Federal Home Loan Banks to ensure they continue to invest in housing and community development. Cortez Masto is also leading bipartisan legislation to ensure that big bank executives are not allowed to collect massive paychecks and bonuses, disregard prudent risk management, and walk away scot-free if the bank goes under.

###