A window to a new world

摘要

For an industry that has seen many a defenestration over the past year, you might expect America's investment banks to be wary of open windows. But the move in March to allow primary dealers as well as commercial banks to borrow overnight from the Federal Reserve's discount window has calmed fears of further Bear Stearns-like death spirals. Lehman Brothers, the weakest of the remaining big investment banks, may have seen its share price pummelled as questions swirl over its business model. But no one thinks it is about to run out of cash.rnWhat will this lifeline cost in terms of regulation? That may be clearer after Congress holds hearings on the issue, scheduled to begin on July 10th. Wall Street executives are not optimistic. "The favourite game on Capitol Hill these days is Hunt the Investment Banker," sighs one.