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What is the too-big-to-fail policy

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a. Who is the Lender of Last Resort (LLR) in the United States and what does this mean? What does a LLR do? Why does it exist?

b. What is the too-big-to-fail policy and what does this have to do with the LLR?

c. What specifically did the Federal Reserve do in its role of LLR during the financial crisis of 2007-09

d. Could the Fed have saved Lehman Brothers?

Please provide as detailed explanation as possible.

Reference no: EM132653790

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