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Forms of Federal Reserve Lending to Financial Institutions

Posted By Barry Ritholtz On March 28, 2008 @ 12:34 pm In Credit,Federal Reserve | Comments Disabled

Fed_lending_chart [1]

Its becoming increasingly difficult to keep up with all of the Federal Reserve’s new programs to keep the system solvent, well lubricated, and functioning.

Now, you can track all of these programs via the Federal Reserve Bank of New York. They published a handy guide counting all the ways you can engage in Moral Hazard borrow from the nation’s lender of last resort.

These Five were created since August:

Term Securities Lending Facility (TSLF), announced March 11, allowing securities dealers to get Treasurys at auction for 28 days
Primary Dealer Credit Facility (PDCF), announced March 16, for securities firms to receive overnight loans
Term Auction Facility (TAF), announced December 12, for banks to get funds at auction without the discount window stigma
Single-Tranche OMO (Open Market Operation) program, announced March 7, allowing securities dealers to get 28-day funds
Term Discount Window Program (TDWP?), announced August 17, extending the length of discount-window loans to 90 days

Hat tip: Real Time Economics [2]

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Source:
Forms of Federal Reserve Lending to Financial Institutions [1]
Federal Reserve Bank of New York
March 2008
http://www.newyorkfed.org/markets/Forms_of_Fed_Lending.pdf

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URL to article: http://www.ritholtz.com/blog/2008/03/forms-of-federal-reserve-lending-to-financial-institutions/

URLs in this post:

[1] Image: http://www.newyorkfed.org/markets/Forms_of_Fed_Lending.pdf

[2] Real Time Economics: http://blogs.wsj.com/economics/2008/03/28/guide-to-feds-alphabet-soup/

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