Government and GSEs
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.
Purchase of Freddie Mortgage-Backed Securities
Date:
September 7, 2008
Who:
Treasury
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Government and GSEs
Action Type:
Equity Purchase
Amount Spent:
$105.90 billion Program allows the Treasury Department to purchase government sponsored enterprise (GSE) mortgage-backed securities in the open market.
Notes:
Maximum purchases of mortgage-backed securities are unlimited. Figure for amount spent is current as of 3/2/2010 (http://www.fhfa.gov/Default.aspx?Page=70). Since the purchase of Freddie Mac mortgage-backed securities from the general fund of the Treasury constitutes an intergovernmental transfer, the deficit impact is zero.
Purchase of Freddie Mac Preferred Stock
Who:
FHFA
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Government and GSEs
Action Type:
Equity Purchase
Maximum Amount:
> $100.00 billion
Amount Spent:
$63.70 billion As part of conservatorship, the Treasury agreed to purchase up to $100 billion in stock from each GSE ($200 billion total) including an immediate receipt of $1 billion in senior preferred stock from each GSE as well as warrants to purchase 79.9% of each GSE's common stock. On 2/13/2009, the Treasury Department increased the maximum amount of GSE stock they would agree to purchase by $100 billion each, bringing the total to $400 billion. At the time, they estimated that, in total, they would be required to purchase $50 billion from Freddie Mac and $16 billion from Fannie Mae.
Notes:
Since the purchase of Freddie Mac preferred stock by FHFA constituted an intergovernmental transfer of stock from a GSE to a federal agency, the deficit impact is zero. Amount spent as of 2/25/2011 (http://www.fhfa.gov/Default.aspx?Page=70).
Purchase of Fannie Mae Preferred Stock
Date:
September 7, 2008
Who:
FHFA
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Government and GSEs
Action Type:
Equity Purchase
Maximum Amount:
> $100.00 billion
Amount Spent:
$98.70 billion As part of conservatorship, the Treasury agreed to purchase up to $100 billion in stock from each GSE ($200 billion total) including an immediate receipt of $1 billion in senior preferred stock from each GSE as well as warrants to purchase 79.9% of each GSE's common stock. On 2/13/2009, the Treasury Department increased the maximum amount of GSE stock they would agree to purchase by $100 billion each, bringing the total to $400 billion. They estimated that, in total, they would be required to purchase $50 billion from Freddie Mac and $16 billion from Fannie Mae.
Notes:
Since the purchase of Fannie Mae preferred stock by FHFA constituted an intergovernmental transfer of stock from a GSE to a federal agency, the deficit impact is zero. Amount spent as of 5/9/2011 (http://www.fhfa.gov/Default.aspx?Page=70).
Purchase of Fannie Mortgage-Backed Securities
Date:
September 7, 2008
Who:
Treasury
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Government and GSEs
Action Type:
Equity Purchase
Amount Spent:
$114.80 billion Program allows the Treasury Department to purchase government sponsored enterprise (GSE) mortgage-backed securities in the open market.
Notes:
Maximum purchases of mortgage-backed securities are unlimited. Figure for amount spent is current as of 3/2/2010 (http://www.fhfa.gov/Default.aspx?Page=70). Since the purchase of Fannie Mae mortgage-backed securities from the general fund of the Treasury constitutes an intergovernmental transfer, the deficit impact is zero.
Conservatorship of Fannie/Freddie
Date:
September 7, 2008
Who:
FHFA
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Government and GSEs
Action Type:
Government Conservatorship
Deficit Impact:
$389.00 billion Placement of Fannie Mae and Freddie Mac into government conservatorship by the Federal Housing Finance Agency, until the institutions are deemed to have been stabilized. Conservatorship was coupled with other actions to ensure liquidity.
CBO estimates that $291 billion in federal outlays went towards the conservatorship of Fannie and Freddie in 2009, with a projected $98 billion in subsidies over the next 10 years.
Notes:
Deficit impact represents CBO's estimate of the cost of bringing Fannie Mae and Freddie Mac "on-budget" for 2009-2019 (per CBO's proposed budgetary treatment) calculated by assessing the risk-adjusted net present value of Fannie Mae's and Freddie Mac's current net liabilities, plus their subsidy costs for 2009. (http://www.cbo.gov/ftpdocs/108xx/doc10878/01-13-FannieFreddie.pdf).
Purchase of Fannie/Freddie Discount Notes
Date:
September 19, 2008
Policy Area:
Financial Sector Policy
Economic Target:
Government and GSEs
Action Type:
Equity Purchase
Amount Spent:
$57.50 billion Purchase of short-term debt obligations of Fannie Mae, Freddie Mac and Federal Home Loan. Banks from primary dealers.
Notes:
Maximum amount limited only by total GSE debt obligations. Amount spent is purchases reported on the Fed balance sheet as of 3/30/2010. 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.
Purchase of Fannie/Freddie Debt
Date:
November 25, 2008
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Government and GSEs
Action Type:
Equity Purchase
Maximum Amount:
$200.00 billion
Amount Spent:
$75.11 billion The Federal Reserve originally announced that it would purchase up to $100 billion in debt from Fannie Mae, Freddie Mac, and Federal Home Loan Bank, and up to and $500 billion in mortgage-backed securities from Fannie Mae, Freddie Mac, and Ginnie Mae.
Notes:
Amount spent indicates holdings of agency debt and mortgage backed securities as of 1/16/2013. See 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.
Purchase of Long-Term Treasury Bonds
Date:
March 18, 2009
Policy Area:
Monetary Policy
Economic Target:
Government and GSEs
Action Type:
Other
Amount Spent:
$1,327.69 billion On 3/19/2009 The Federal Open Market Committee announced that the Fed would purchase up to $300 billion in "longer term" Treasury securities. This would have the effect of driving down interest rates on these securities and various types of loans.
This action was taken in conjunction with the Fed's decision to increase its purchase of federal agency debt and mortgage-backed securites.
Notes:
Maximum amount is currently unknown. Amount spent as of 1/23/2013 (http://www.clevelandfed.org/research/data/credit_easing/index.cfm). 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.
Supplemental Financing Program to Federal Reserve
Date:
September 17, 2008
Who:
Treasury
Policy Area:
Monetary Policy
Economic Target:
Government and GSEs
Action Type:
Other
Amount Spent:
$5.00 billion At the request of the Federal Reserve, The Treasury will market a separate, new line of Treasury bills (short term securities) to help fund the Federal Reserve's actions taken in response to the economic and financial crisis.
In a release on 2/23/2010, the Treasury announced that the Treasury will increase the balance of the program from the current $5 billion to $200 billion, a level maintained between February and September 2009.
Notes:
Maximum amount is unlimited. Amount spent reflects value of bills outstanding as of 2/17/2010. Deficit impact unknown.
