who is the lender of last resort in the us
Lender of last resort A lender of last resort (LOLR) is the lender (provider of liquidity), which since the beginning of the 20th century has usually been a central bank, that supplies liquidity to a financial institution or to the financial market in general when it is lacking. The goal is to prevent financial panics and bank runs spreading from one bank to the next from a lack of liquidity. Different definitions of the lender of last resort exist in the literature. A comprehensive one is the following: "the discretionary provision of liquidity to a financial institution (or the market as a whole) by the central bank in reaction to an adverse shock which causes an abnormal increase in demand for liquidity which cannot be met from an alternative source".[1]
Bank of America Home Loans Bank of America Home Loans is the mortgage unit of Bank of America. In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion. In 2006, Countrywide financed 20% of all mortgages in the United States, at a value of about 3.5% of United States GDP, a proportion greater than any other single mortgage lender.