WASHINGTON — Federal Reserve Board Gov. Elizabeth Duke defended the central bank's use of its emergency lending powers late Monday, arguing that without them, "we would have had a much, much worse outcome."

"Particularly the events that involve specific institutions came up very quickly and we had to act very quickly," she said in remarks to the Women in Housing and Finance. "It would have been far preferable if some other government agency had the funding and the authority to act. But nobody else did and ... if you look at the outcome after the Lehman Brothers' collapse and you look at what that did, that argues for the importance of being able to use these authorities."

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