Federal Reserve and Government Agency Links
Keeping Track of
the Financial Crisis
James Bullard speaks on the origins of the financial crisis:
|»||"What Challenges Do We Face for Regulatory Reform?" June 15, 2009. Video | Transcript|
|»||"Did the Fed Leave Interest Rates Too Low for Too Long?" June 11, 2009. Video | Transcript|
|»||"What Happened?" June 9, 2009. Video | Transcript|
Frequently Asked Questions about the Financial Crisis
The financial crisis has interfered with the Fed's ability to operate a conventional monetary policy. Lender-of-last-resort measures have been a primary focus. The FOMC has reduced its target for t...
Monetary policy remains potent. Even with the fed funds rate at zero, the Fed can continue to influence financial markets and the economy through open market operations and various lending programs...
The FOMC authorizes a $330 billion expansion of swap lines with Bank of Canada, Bank of England, Bank of Japan, Danmarks Nationalbank, ECB, Norges Bank, Reserve Bank of Australia, Sveriges Riksbank, and Swiss National Bank Swap lines outstanding now total $620 billion. The Federal Reserve Board expands the TAF, announcing an increase in the size of the 84-day maturity auction to $75 billion and two forward TAF auctions totaling $150 billion to provide short-term (one- to two-week) TAF credit over year-end.
The U.S. Treasury Department opens its Temporary Guarantee Program for Money Market Funds [see note for September 19]. The temporary guarantee program provides coverage to shareholders for amounts that they held in participating money market funds as of the close of business on September 19, 2008.
The FDIC announces that Citigroup will purchase the banking operations of Wachovia Corporation. The FDIC agrees to enter into a loss-sharing arrangement with Citigroup on a $312 billion pool of loans, with Citigroup absorbing the first $42 billion of losses and the FDIC absorbing losses beyond that. In return, Citigroup would grant the FDIC $12 billion in preferred stock and warrants.