NewBank
ORG
NewBank
The so-called NewBank exists largely on paper, but like a superhero on standby, it can spring into action to stabilize the government securities market if a legal or financial disaster strikes. The NewBank will have no physical location and no full-time employees. In a crisis, the NewBank would take over the legal position of the existing clearing bank and replace its top officers with a small group of designated executives from other institutions. The NewBank would then take over the troubled bank's existing operations to process the trades.