WASHINGTON (Reuters) - The Federal Reserve's actions to lend billions of dollars to prop up and sell off ailing brokerage Bear Stearns will help all Americans by stabilizing capital markets, a senior U.S. Treasury official said.
In a transcript released on Friday of a television interview on C-SPAN to air on Sunday, U.S. Treasury Assistant Secretary for Financial Markets Anthony Ryan said action by the Fed to assume $30 billion in securities obligation from Bear Stearns was among actions done "to facilitate liquidity and orderliness of the markets."
Under a deal brokered Sunday through the Fed and the Treasury, Bear Stearns
"In terms of what the Fed did and what other regulators are doing to help facilitate orderliness in our capital markets, I do think that helps everybody, given their vested interests in ensuring that financial institutions can lend to them and that there's stability in their investments they can make into the capital markets," Ryan said.
(Reporting by David Lawder; Editing by Neil Stempleman)