1115.org

Remarks by Treasury Secretary Henry M. Paulson (3/26/08):

Historically, commercial banks have had regular access to the discount window. Access to the Federal Reserve’s liquidity facilities traditionally has been accompanied by strong prudential oversight of depository institutions, which also has included consolidated supervision where appropriate. Certainly any regular access to the discount window should involve the same type of regulation and supervision.

Never happen. The only question is how long it takes for someone in the administration, maybe even Paulson himself, to walk back this statement and assert that the market - of which the Fed is now a part - must be unencumbered by government interference. My guess is sometime around the day that Paulson and his Wall Street buddies have to face the Senate Banking and Finance committees.