* Commercial Paper Funding Facility
(October 2008): issuers and holders of commercial paper
Acronyms crowd these pages: CPFF (Commercial Paper Funding Facility
), PDCF (Primary Dealer Credit Facility), TAF (Term Auction Facility), TALF (Term Asset-Backed Securities Loan Facility), TARP (Troubled Asset Relief Program), TLGP (Temporary Liquidity Guarantee Program).
Over the same period, Bernanke set up a whole slew of new lending facilities: the Commercial Paper Funding Facility
, the Money Market Investors Funding Facility, the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, the Term Asset-Backed Securities Loan Facility, and Maiden Lane II and III.
"The Federal Reserve's Commercial Paper Funding Facility
." Federal Reserve Bank of New York ECONOMIC POLICY REVIEW 17, no.
of America were among Japanese beneficiaries of the Commercial Paper Funding Facility
set up in October 2008.
The Commercial Paper Funding Facility
(CPFF) was initially
At the beginning of February, several programs were allowed to expire, including the Primary Dealer Credit Facility (PDCF), the Term Securities Lending Facility (TSLF), the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), and the Commercial Paper Funding Facility
This message of monetary policy normalisation (rather than tightening) was underlined by the accompanying announcement that the Fed would wind up a number of its special credit facilities - for example the Commercial Paper Funding Facility
- which had also been intended to ease liquidity conditions in the market in times of stress.
Commercial Paper Funding Facility
The events of mid-September 2008 made money market investors (who prize liquidity) hesitant to purchase assets with maturities longer than a single day.
By the time the turbulence reached a peak in the middle of October, Washington Mutual had been taken over by federal authorities, troubled Wachovia was to be acquired by either Citigroup or Wells Fargo, Goldman Sachs and Morgan Stanley were no longer investment banks, the Federal Reserve had announced its Commercial Paper Funding Facility
and had begun paying interest on reserves to depository institutions, and the Troubled Asset Relief Program (TARP) underwent a major change after having been signed into law.
Specifically, the Fed's Board of Governors extended the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), the Commercial Paper Funding Facility
(CPFF), the Primary Dealer Credit Facility (PDCF), and the Term Securities Lending Facility (TSLF) through Feb.
Meantime company spokesman Bob DeFillippo said that Prudential did not expect the downgrade to cut off its ability to access the Federal Reserve's Commercial Paper Funding Facility
, saying that the company's insurance arm, Prudential Funding Inc, had retained its rating.