Sun Shines on Fed ‘Doomsday Book’

null By Emre KuvvetDec. 11, 2023 6:16 pm ETJournal Editorial Report: The week’s best and worst from Kate Bachelder Odell, Kyle Peterson, Allysia Finley and Dan Henninger. Images: AP/AFP/Getty Images Composite: Mark KellyThe so-called Doomsday Book, an internal document used to guide the Federal Reserve’s actions during emergencies, has long been the subject of intrigue and suspicion. Largely a compilation of legal opinions, the book has been a key resource for the Federal Reserve Bank of New York for decades, allowing it to play a unique and oversize role during financial crises. No other regional Federal Reserve bank has such a resource.The book is a living document that records pivotal decisions made during times of financial distress. It played a crucial role in then New York Fed President Timothy Geithner’s decision to rescue Bear Stearns from bankruptcy in 2008.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8Sponsored OffersTurboTax

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Opinion Dec 12, 2023 Add to Reading List

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Emre Kuvvet

Dec. 11, 2023 6:16 pm ET

Journal Editorial Report: The week’s best and worst from Kate Bachelder Odell, Kyle Peterson, Allysia Finley and Dan Henninger. Images: AP/AFP/Getty Images Composite: Mark Kelly

The so-called Doomsday Book, an internal document used to guide the Federal Reserve’s actions during emergencies, has long been the subject of intrigue and suspicion. Largely a compilation of legal opinions, the book has been a key resource for the Federal Reserve Bank of New York for decades, allowing it to play a unique and oversize role during financial crises. No other regional Federal Reserve bank has such a resource.

The book is a living document that records pivotal decisions made during times of financial distress. It played a crucial role in then New York Fed President Timothy Geithner’s decision to rescue Bear Stearns from bankruptcy in 2008.