Bernanke stresses need for mortgage-market backstop

07/18/2013 | Reuters

Federal Reserve Chairman Ben Bernanke told the Senate banking committee that during stressful times, there needs to be some form of support in mortgage markets. "I think a key issue is going to be ... making sure that there is some kind of backstop or protection for situations where the financial markets are in distress," Bernanke said. He emphasized that if government plays a role in that backstop, then capital requirements for loan repackagers and proper compensation for government guarantees would also be effective policies.

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