Loans
Supplemental Financing for IMF
Date:
June 24, 2009
Who:
Treasury
Policy Area:
Monetary Policy
Economic Target:
Government and GSEs
Action Type:
Loans
Maximum Amount:
$75.00 billion
Amount Spent:
$75.00 billion
Deficit Impact:
$4.97 billion As part of the Supplemental Appropriations Act (H.R. 2346), signed into law on 6/24/2009, Congress and the President agreed to add $75 billion in Special Drawing Rights (SDRs) at the International Monetary Fund. The funds will remain "available until expended" to buffer the IMF's reserves.
Notes:
Deficit impact of $75 billion increase in SDRs is estimated to cost the U.S. government $4.973 billion.
Term Auction Facility
Date:
December 12, 2007
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Loans
Maximum Amount:
$300.00 billion The Term Auction Facility (TAF) allows banks and other financial institutions to pledge collateral in exchange for a loan from the Federal Reserve in order to alleviate liquidity pressures in short-term funding markets. The interest rate on the loan is determined by auction; such auctions are conducted biweekly for loans with a maturity of either 28 or 84 days.
On 5/2/2008 a Fed release increaed the maximum size of all auctions from $50 billion to $75 billion. A maximum of $150 billion could then be lent.
Notes:
Amount spent indicates outstanding Term Auction Loans as of 5/10/2010 (http://www.federalreserve.gov/releases/h41/Current/). Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Term Repurchase Transactions
Date:
March 7, 2008
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Loans
Maximum Amount:
~ $100.00 billion Program allows primary dealers (i.e., banks or securities firms that trade directly with the Federal Reserve) to trade securities in exchange for a 28-day cash loan from Federal Reserve. The primary dealer gives the Federal Reserve a security and receives a cash loan, and also agrees to buy back the security in 28 days for a fixed price.
Notes:
Amount spent current as of 4/13/2010 (http://www.federalreserve.gov/releases/h41/Current/). Total purchases were "expected to cumulate" at $100 billion, but in fact reached over this amount at their peak. Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Term Securities Lending Facility
Date:
March 11, 2008
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Loans
Maximum Amount:
$75.00 billion Lending entity created by the Federal Reserve to promote liquidity for primary dealers in the financing markets for Treasury and other collateral. A primary dealer is a bank or securities firm that trades directly with the Federal Reserve. Loans given are for a 28-day period. Initially, the maximum lending allowed through the facility was $200 billion.
However, in a Fed press release on 6/25/2009, the Fed reduced the maximum loan amount available through the facility to $75 billion due to weak demand in recent months.
Notes:
Amount spent indicates loans extended as of 6/9/2010 (http://www.federalreserve.gov/releases/h41/Current/). Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Bear Stearns Funding
Date:
March 14, 2008
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Loans
Maximum Amount:
$29.00 billion
Amount Spent:
$1.42 billion To prevent further market disorder in the wake of Bear Stearn's collapse, the Fed issued $29 billion in non-recourse loans to a holding company ("Maiden Lane, LLC") set up by J.P Morgan to manage and gradually liquidate Bear Stearns' assets.
Source:
Notes:
Amount spent indicates loan extended as of 1/16/2013 (http://www.federalreserve.gov/releases/h41/Current/). The $29 billion in loans to Bear Stearns in 2008 is only worth $26 billion in 2009 dollars, which is how the Fed reports it on its balance sheet. Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Primary Dealer Credit Facility
Date:
July 20, 2008
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Loans
Maximum Amount:
$134.07 billion Overnight lending program allows primary dealers to use collateral to borrow at the Federal Reserve's "discount window." A primary dealer is a bank or securities firm that trades directly with the Federal Reserve. This lending facility gives primary dealers greater capacity to provide financing in securities markets.
On August 17, 2007, the Federal Reserve increased the maximum maturity of primary credit loans to 30 days, citing a slight deterioration in financial market conditions.
Notes:
Maximum amount is the peak cumulative cost of the facility, which occurred on October 8, 2008. Amount spent indicates outstanding loans as of 6/9/2010 (http://www.federalreserve.gov/releases/h41/Current/). Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Options on Term Security Lending Facility Auctions
Date:
September 15, 2008
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Loans
Maximum Amount:
$50.00 billion Federal Reserve auctions an additional $50 billion (maximum) of options under its Term Security Lending Facility (TSLF) auctions. Participating primary dealers receive Treasury securities (Treasury bills, notes, bonds or TIPS) in exchange for approved forms of collateral. Loans are short-term, usually less than the 28 days for normal TSLF loans. Primary dealers might exercise this option during times when they typically face heightened market pressure to hold additional collateral, such as near the end of the business quarter.
Notes:
Maximum amount is announced maximum value of program. Amount spent is total value of options not yet exercised or not yet at maturity (see here for details). Data current as of 10/7/2009. Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Lehman Brothers Bankruptcy Loans
Date:
September 15, 2008
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Loans
Maximum Amount:
$138.00 billion Total of two loans from Federal Reserve to J.P. Morgan to promote orderly dismantling of Lehman Brothers assets and trades.
Notes:
Loan was issued by Fed to J.P. Morgan and paid back in its entirety. Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Fed Line of Credit to AIG
Date:
September 16, 2008
Policy Area:
Financial Sector Policy
Economic Target:
AIG
Action Type:
Loans
Maximum Amount:
$60.00 billion The Fed originally created a credit-lending facility from which AIG was allowed to draw up to $85 billion.
Notes:
Amount spent is current as of 1/19/2011 (http://www.federalreserve.gov/releases/h41/Current/). Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
Money Market Mutual Fund Liquidity Facility
Date:
September 19, 2008
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Loans
Maximum Amount:
$145.89 billion Establishment of Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility to allow Federal Reserve to increases market liquidity by purchasing three month unsecured and asset-backed commercial paper directly from selected corporate issuers.
Notes:
Amount spent indicates outstanding loans as of 10/21/2009 (http://www.federalreserve.gov/releases/h41/Current/). Facility maximum lending amount is unlimited, but never exceeded $416 billion. Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.
