Alert December 07, 2010

As Required by Dodd-Frank Act, FRB Discloses Detailed Information Concerning FRB Assistance Provided under Emergency Credit Facilities, Discount Window Lending Programs and Open Market Operations

In accordance with the provisions of Section 1103(b) (“Section 1103(b)”) of the Dodd‑Frank Wall Street Reform and Consumer Protection Act (which amended Section 11 of the Federal Reserve Act), the FRB posted detailed information on its public website concerning what the FRB described as “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.”  Section 1103(b) requires the FRB to disclose certain information concerning the FRB’s emergency credit facilities, discount window lending and open market operations.  The FRB posted three years of transaction-level information concerning the following FRB credit assistance programs and credit facilities:

  • 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

In addition, the FRB stated that discount window and open-market operation transactions after July 21, 2010 will be posted with a two-year lag.

The transaction data posted by the FRB showed that some of the world’s largest banks (and some large industrial companies who used FRB funds during periods when the commercial paper market was unavailable) were the biggest users of the FRB’s credit facilities during the financial crisis.