Reis: So instead, we came up with the swap lines, which are basically where the Fed lends the dollar, say, to the Bank of England, and the Bank of England then lends them to the UK based bank. Still, it is a lending operation, it is a lender of last resort. What happens when we put the foreign central bank in the middle in my example, the Bank of England, is that now that central bank is going to take on all the default risk from the loan. If the British bank doesn't pay, well, the Bank of England is the one who's on the hook because through the swap line it's given pounds to cover any risk from the Fed. But it also means that the Bank of England is the one doing all the monitoring, choosing who should get a loan, which banks are eligible, which collateral they should give, and so on.