U.S. banks got their second bailout in little more than a decade when Congress cut checks to millions of Americans to help them through the coronavirus crisis, Minneapolis Federal Reserve President Neel Kashkari said on Friday, calling for a new round of reforms to prevent it from happening again.
“I applaud Congress’ bold actions to support people affected by the COVID-19 crisis, but we need to be clear that families weren’t the only beneficiaries,” Kashkari said in remarks prepared for delivery to a Council of Institutional Investors conference. But banking losses, he said, would have been much larger had Americans not had that extra cash to spend.
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Read More: Fed’s Kashkari says pandemic aid was also ‘banking bailout’ | Business