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Bank rule to limit damage in financial crisis
USA Today: The Federal Reserve proposed a rule Tuesday aimed preventing the type of widespread asset sales that rippled through the banking system and worsened the 2008 financial crisis when Lehman Bros. declared bankruptcy.
Under the rule, investment firms such as hedge funds would not be able to immediately cancel contracts for derivatives or certain loans issued by large banks that begin bankruptcy proceedings, as long as the banks continue to pay interest or fulfill other obligations on the assets.
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