Fed Releases Data on Efforts to Stabilize Markets
The Federal Reserve Board has posted detailed information on its public website about more than 21,000 individual credit and other transactions conducted to stabilize markets during the recent financial crisis, restore the flow of credit to American families and businesses, and support economic recovery and job creation in the aftermath of the crisis.
In the Fed’s view, many of the transactions, conducted through a variety of broad-based lending facilities, provided liquidity to financial institutions and markets through fully secured, mostly short-term loans. The Fed believes purchases of agency mortgage-backed securities, or MBS, supported mortgage and housing markets, lowered longer-term interest rates, and fostered economic growth. The Fed also believes dollar liquidity swap lines with foreign central banks helped stabilize dollar funding markets abroad, thus contributing to the restoration of stability in U.S. markets. Other transactions provided liquidity to particular institutions whose disorderly failure could have severely stressed an already fragile financial system.
As provided by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, transaction-level details now are posted from December 1, 2007, to July 21, 2010, in the following programs:
•Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF)
•Term Asset-Backed Securities Loan Facility (TALF)
•Primary Dealer Credit Facility (PDCF)
•Commercial Paper Funding Facility (CPFF)
•Term Securities Lending Facility (TSLF)
•TSLF Options Program (TOP)
•Term Auction Facility (TAF)
•Agency MBS purchases
•Dollar liquidity swap lines with foreign central banks
•Assistance to Bear Stearns, including Maiden Lane
•Assistance to American International Group, including Maiden Lane II and III
Check dodd-frank.com frequently for updates on the Dodd-Frank Act and other important securities law matters.
Contact Steve Quinlivan for more information.