John Spratt: “the Federal Reserve used to have a regulation called Regulation V, for V loans. It dated back to the war but was carried…”

“the Federal Reserve used to have a regulation called Regulation V, for V loans. It dated back to the war but was carried over from the war and renewed each year in the Defense Production Act. The last entity that I know which qualified for a Reg V loan was the Penn Central. They were to have obtained a $400 million V loan in the early 1970s, until the Reagan administration reversed course and decided against it on the day of closing. I know, because I was working in the Pentagon then. I was tangentially involved with it. I do not know whether the V loan authority is still on the books, but it applied to transportation nexuses. Where significant transportation nexuses in this country were at risk, it is my recollection it was applicable to those circumstances.”