Alan Greenspan publicly reassured markets during the 1987 crash with a pledge to provide liquidity.
Greenspan had become chairman of the Federal Reserve in August 1987, only weeks before Black Monday. On October 20, the Federal Reserve issued a statement saying it affirmed its readiness to serve as a source of liquidity to support the economic and financial system.
The statement helped signal that the central bank would not allow a temporary market disruption to destroy the payments and banking system. The Fed also supplied reserves to the banking sector, while banks continued making credit available to securities firms.
Greenspan’s response is sometimes confused with later crisis actions by Ben Bernanke, who chaired the Fed during the 2008 financial crisis. Greenspan’s statement belongs specifically to the aftermath of the 1987 crash.