WASHINGTON -- For the first time in more than a decade, the Federal Reserve
has set up shop inside brokerages to monitor their financial condition, perhaps
the beginning of an expanded role for the central bank and additional regulation
for Wall Street.
The Fed's new role is tied to its recent decision to lend money to Wall
Street firms. The central bank already loaned funds to commercial banks, but it
also regulates them.
The expanded reach of the Fed comes amid criticism aimed at the Securities
and Exchange Commission and its oversight of Bear Stearns Cos. before its
collapse. The ...