Sunday, May 29, 2016
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Full Timeline of financial crisis
from stloiuisfed.org
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires the Federal Reserve to release information concerning the borrowers and counterparties participating in emergency credit facilities, discount window lending programs and open market operations authorized or conducted by the Board of Governors or a Federal Reserve Bank. The disclosure must be made on an on-going basis with a time lag of at most two years depending on the specific type of transaction.
Full Timeline
February 2007
February 27, 2007 | Freddie Mac Press Release
The Federal Home Loan Mortgage Corporation (Freddie Mac) announces that it will no longer buy the most risky subprime mortgages and mortgage-related securities.
April 2007
April 2, 2007 | SEC Filing
New Century Financial Corporation, a leading subprime mortgage lender, files for Chapter 11 bankruptcy protection.
June 2007
June 1, 2007 | Congressional Testimony
Standard and Poor’s and Moody’s Investor Services downgrade over 100 bonds backed by second-lien subprime mortgages.
June 7, 2007
Bear Stearns informs investors that it is suspending redemptions from its High-Grade Structured Credit Strategies Enhanced Leverage Fund.
June 28, 2007 | Federal Reserve Press Release
The Federal Open Market Committee (FOMC) votes to maintain its target for the federal funds rate at 5.25 percent.
July 2007
July 11, 2007 | Standard and Poor’s Ratings Direct
Standard and Poor’s places 612 securities backed by subprime residential mortgages on a credit watch.
July 24, 2007 | SEC Filing
Countrywide Financial Corporation warns of “difficult conditions.”
July 31, 2007 | U.S. Bankruptcy Filing
Bear Stearns liquidates two hedge funds that invested in various types of mortgage-backed securities.
August 2007
August 6, 2007 | SEC Filing
American Home Mortgage Investment Corporation files for Chapter 11 bankruptcy protection.
August 7, 2007 | Federal Reserve Press Release
The FOMC votes to maintain its target for the federal funds rate at 5.25 percent.
August 9, 2007 | BNP Paribas Press Release
BNP Paribas, France’s largest bank, halts redemptions on three investment funds.
August 10, 2007 | Federal Reserve Press Release
The Federal Reserve Board announces that it “will provide reserves as necessary…to promote trading in the federal funds market at rates close to the FOMC’s target rate of 5.25 percent. In current circumstances, depository institutions may experience unusual funding needs because of dislocations in money and credit markets. As always, the discount window is available as a source of funding.”
August 16, 2007 | SEC Filing
Fitch Ratings downgrades Countrywide Financial Corporation to BBB+, its third lowest investment-grade rating, and Countrywide borrows the entire $11.5 billion available in its credit lines with other banks.
August 17, 2007 | Federal Reserve Press Release
The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 5.75 percent, bringing the rate to only 50 basis points above the FOMC’s federal funds rate target. The Board also increases the maximum primary credit borrowing term to 30 days, renewable by the borrower.
August 17, 2007 | Federal Reserve Press Release
Following an intermeeting conference call, the FOMC releases a statement about the current financial market turmoil, and notes that the “downside risks to growth have increased appreciably.”
September 2007
September 14, 2007 | United Kingdom Treasury Department Press Release
The Chancellor of the Exchequer authorizes the Bank of England to provide liquidity support for Northern Rock, the United Kingdom’s fifth-largest mortgage lender.
September 18, 2007 | Federal Reserve Press Release
The FOMC votes to reduce its target for the federal funds rate 50 basis points to 4.75 percent. The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 5.25 percent.
October 2007
October 10, 2007 | Hope Now Press Release | Treasury Department Press Release
U.S. Treasury Secretary Paulson announces the HOPE NOW initiative, an alliance of investors, servicers, mortgage market participants, and credit and homeowners’ counselors encouraged by the Treasury Department and the Department of Housing and Urban Development.
October 15, 2007 | Bank of America Press Release
Citigroup, Bank of America, and JPMorgan Chase announce plans for an $80 billion Master Liquidity Enhancement Conduit to purchase highly rated assets from existing special purpose vehicles.
October 31, 2007 | Federal Reserve Press Release
The FOMC votes to reduce its target for the federal funds rate 25 basis points to 4.50 percent. The Federal Reserve Board votes to reduce the primary credit rate 25 basis points to 5.00 percent.
November 2007
November 1, 2007 | Additional Information
Financial market pressures intensify, reflected in diminished liquidity in interbank funding markets.
December 2007
December 11, 2007 | Federal Reserve Press Release
The FOMC votes to reduce its target for the federal funds rate 25 basis points to 4.25 percent. The Federal Reserve Board votes to reduce the primary credit rate 25 basis points to 4.75 percent.
December 12, 2007 | Federal Reserve Press Release | Additional Information
The Federal Reserve Board announces the creation of a Term Auction Facility (TAF) in which fixed amounts of term funds will be auctioned to depository institutions against a wide variety of collateral. The FOMC authorizes temporary reciprocal currency arrangements (swap lines) with the European Central Bank (ECB) and the Swiss National Bank (SNB). The Fed states that it will provide up to $20 billion and $4 billion to the ECB and SNB, respectively, for up to 6 months.
December 21, 2007 | Federal Reserve Press Release
The Federal Reserve Board announces that TAF auctions will be conducted every two weeks as long as financial market conditions warrant.
December 21, 2007 | Bank of America Press Release
Citigroup, JPMorgan Chase, and Bank of America abandon plans for the Master Liquidity Enhancement Conduit, announcing that the fund “is not needed at this time.”
January 2008
January 11, 2008 | Bank of America Press Release
Bank of America announces that it will purchase Countrywide Financial in an all-stock transaction worth approximately $4 billion.
January 18, 2008 | SEC Filing
Fitch Ratings downgrades Ambac Financial Group’s insurance financial strength rating to AA, Credit Watch Negative. Standard and Poor’s place Ambac’s AAA rating on CreditWatch Negative.
January 22, 2008 | Federal Reserve Press Release
In an intermeeting conference call, the FOMC votes to reduce its target for the federal funds rate 75 basis points to 3.5 percent. The Federal Reserve Board votes to reduce the primary credit rate 75 basis points to 4 percent.
January 30, 2008 | Federal Reserve Press Release
The FOMC votes to reduce its target for the federal funds rate 50 basis points to 3 percent. The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 3.5 percent.
February 2008
February 13, 2008 | Public Law 110-185
President Bush signs the Economic Stimulus Act of 2008 (Public Law 110-185) into law.
February 17, 2008 | United Kingdom Treasury Department Press Release
Northern Rock is taken into state ownership by the Treasury of the United Kingdom.
March 2008
March 5, 2008 | Carlyle Capital Corporation Press Release
Carlyle Capital Corporation receives a default notice after failing to meet margin calls on its mortgage bond fund.
March 7, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces $50 billion TAF auctions on March 10 and March 24 and extends the TAF for at least 6 months. The Board also initiates a series of term repurchase transactions, expected to cumulate to $100 billion, conducted as 28-day term repurchase agreements with primary dealers.
March 11, 2008 | Federal Reserve Press Release | Additional Information
The Federal Reserve Board announces the creation of the Term Securities Lending Facility (TSLF), which will lend up to $200 billion of Treasury securities for 28-day terms against federal agency debt, federal agency residential mortgage-backed securities (MBS), non-agency AAA/Aaa private label residential MBS, and other securities. The FOMC increases its swap lines with the ECB by $10 billion and the Swiss National Bank by $2 billion and also extends these lines through September 30, 2008.
March 14, 2008 | Federal Reserve Press Release
The Federal Reserve Board approves the financing arrangement announced by JPMorgan Chase and Bear Stearns [see note for March 24]. The Federal Reserve Board also announces they are “monitoring market developments closely and will continue to provide liquidity as necessary to promote the orderly function of the financial system.”
March 16, 2008 | Federal Reserve Press Release | Additional Information
The Federal Reserve Board establishes the Primary Dealer Credit Facility (PDCF), extending credit to primary dealers at the primary credit rate against a broad range of investment grade securities. The Federal Reserve Board votes to reduce the primary credit rate 25 basis points to 3.25 percent, lowering the spread between the primary credit rate and FOMC target for the federal funds rate to 25 basis points. The Board also votes to increase the maximum maturity of primary credit loans to 90 days.
March 18, 2008 | Federal Reserve Press Release
The FOMC votes to reduce its target for the federal funds rate 75 basis points to 2.25 percent. The Federal Reserve Board votes to reduce the primary credit rate 75 basis points to 2.50 percent.
March 24, 2008 | Federal Reserve Bank of New York Press Release
The Federal Reserve Bank of New York announces that it will provide term financing to facilitate JPMorgan Chase & Co.’s acquisition of The Bear Stearns Companies Inc. A limited liability company (Maiden Lane) is formed to control $30 billion of Bear Stearns assets that are pledged as security for $29 billion in term financing from the New York Fed at its primary credit rate. JPMorgan Chase will assume the first $1 billion of any losses on the portfolio.
April 2008
April 30, 2008 | Federal Reserve Press Release
The FOMC votes to reduce its target for the federal funds rate 25 basis points to 2 percent. The Federal Reserve Board votes to reduce the primary credit rate 25 basis points to 2.25 percent.
May 2008
May 2, 2008 | Federal Reserve Press Release
The FOMC expands the list of eligible collateral for Schedule 2 TSLF auctions to include AAA/Aaa-rated asset-backed securities, in addition to already eligible residential and commercial MBS and agency collateralized mortgage obligations. The FOMC also increases existing swap lines with the ECB by $20 billion and with the Swiss National Bank by $6 billion. The Federal Reserve Board expands TAF auctions from $50 billion to $75 billion.
June 2008
June 5, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces approval of the notice of Bank of America to acquire Countrywide Financial Corporation.
June 5, 2008 | SEC Filing
Standard and Poor’s downgrades monoline bond insurers AMBAC and MBIA from AAA to AA.
June 25, 2008 | Federal Reserve Press Release
The FOMC votes to maintain its target for the federal funds rate at 2.00 percent.
July 2008
July 11, 2008 | FDIC Press Release
The Office of Thrift Supervision closes IndyMac Bank, F.S.B. The Federal Deposit Insurance Corporation (FDIC) announces the transfer of the insured deposits and most assets of IndyMac Bank, F.S.B. to IndyMac Federal Bank, FSB.
July 13, 2008 | Federal Reserve Press Release
The Federal Reserve Board authorizes the Federal Reserve Bank of New York to lend to the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), should such lending prove necessary.
July 13, 2008 | Treasury Department Press Release
The U.S. Treasury Department announces a temporary increase in the credit lines of Fannie Mae and Freddie Mac and a temporary authorization for the Treasury to purchase equity in either GSE if needed.
July 15, 2008 | SEC Press Release
The Securities Exchange Commission (SEC) issues an emergency order temporarily prohibiting naked short selling in the securities of Fannie Mae, Freddie Mac, and primary dealers at commercial and investment banks.
July 30, 2008 | Public Law 110-289
President Bush signs into law the Housing and Economic Recovery Act of 2008 (Public Law 110-289), which, among other provisions, authorizes the Treasury to purchase GSE obligations and reforms the regulatory supervision of the GSEs under a new Federal Housing Finance Agency.
July 30, 2008 | Federal Reserve Press Release
The Federal Reserve Board extends the TSLF and PDCF through January 30, 2009, introduces auctions of options on $50 billion of draws on the TSLF, and introduces 84-day TAF loans. The FOMC increases its swap line with the ECB to $55 billion.
August 2008
August 5, 2008 | Federal Reserve Press Release
The FOMC votes to maintain its target for the federal funds rate at 2.00 percent.
September 2008
September 7, 2008 | Treasury Department Press Release
The Federal Housing Finance Agency (FHFA) places Fannie Mae and Freddie Mac in government conservatorship. The U.S. Treasury Department announces three additional measures to complement the FHFA’s decision: 1) Preferred stock purchase agreements between the Treasury/FHFA and Fannie Mae and Freddie Mac to ensure the GSEs positive net worth; 2) a new secured lending facility which will be available to Fannie Mae, Freddie Mac, and the Federal Home Loan Banks; and 3) a temporary program to purchase GSE MBS.
September 14, 2008 | Federal Reserve Press Release
The Federal Reserve Board expands the list of eligible collateral for the PDCF to include any collateral that can be pledged in the tri-party repo system of the two major clearing banks. Previously PDCF collateral had been limited to investment-grade debt securities. The Board also expands the list of collateral accepted by TSLF to include all investment-grade debt securities and increases the frequency of Schedule 2 TSLF auctions and total offering to $150 billion. The Board also adopts an interim final rule that provides temporary exceptions to Section 23A of the Federal Reserve Act to allow insured depository institutions to provide liquidity to their affiliates for assets typically funded in the tri-party repo market.
September 15, 2008 | Bank of America Press Release
Bank of America announces its intent to purchase Merrill Lynch & Co. for $50 billion.
September 15, 2008 | SEC Filing
Lehman Brothers Holdings Incorporated files for Chapter 11 bankruptcy protection.
September 16, 2008 | Federal Reserve Press Release
The Federal Reserve Board authorizes the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG) under Section 13(3) of the Federal Reserve Act.
September 16, 2008 | Federal Reserve Press Release
The FOMC votes to maintain its target for the federal funds rate at 2.00 percent.
September 16, 2008 | Reserve Funds Press Release
The net asset value of shares in the Reserve Primary Money Fund falls below $1, primarily due to losses on Lehman Brothers commercial paper and medium-term notes.
September 17, 2008 | Treasury Department Press Release
The U.S. Treasury Department announces a Supplementary Financing Program consisting of a series of Treasury bill issues that will provide cash for use in Federal Reserve initiatives.
September 17, 2008 | SEC Press Release
The SEC announces a temporary emergency ban on short selling in the stocks of all companies in the financial sector.
September 18, 2008 | Federal Reserve Press Release
The FOMC expands existing swap lines by $180 billion and authorizes new swap lines with the Bank of Japan, Bank of England, and Bank of Canada.
September 19, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces the creation of the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF) to extend non-recourse loans at the primary credit rate to U.S. depository institutions and bank holding companies to finance their purchase of high-quality asset-backed commercial paper from money market mutual funds. The Federal Reserve Board also announces plans to purchase federal agency discount notes (short-term debt obligations issued by Fannie Mae, Freddie Mac, and Federal Home Loan Banks) from primary dealers.
September 19, 2008 | Treasury Department Press Release
The U.S. Treasury Department announces a temporary guaranty program that will make available up to $50 billion from the Exchange Stabilization Fund to guarantee investments in participating money market mutual funds.
September 20, 2008 | Treasury Department Press Release | Draft Legislation
The U.S. Treasury Department submits draft legislation to Congress for authority to purchase troubled assets.
September 21, 2008 | Federal Reserve Press Release
The Federal Reserve Board approves applications of investment banking companies Goldman Sachs and Morgan Stanley to become bank holding companies.
September 24, 2008 | Federal Reserve Press Release
The FOMC establishes new swap lines with the Reserve Bank of Australia and the Sveriges Riksbank for up to $10 billion each and with the Danmarks Nationalbank and the Norges Bank for up to $5 billion each. The swap lines are authorized through January 30, 2009.
September 25, 2008 | Office of Thrift Supervision Press Release
The Office of Thrift Supervision closes Washington Mutual Bank. JPMorgan Chase acquires the banking operations of Washington Mutual in a transaction facilitated by the FDIC.
September 26, 2008 | Federal Reserve Press Release
The FOMC increases existing swap lines with the ECB by $10 billion and the Swiss National Bank by $3 billion.
September 29, 2008 | Federal Reserve Press Release
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.
September 29, 2008 | Treasury Department Press Release
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.
September 29, 2008 | FDIC Press Release
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.
September 29, 2008 | Treasury Department Press Release
The U.S. House of Representatives rejects legislation submitted by the Treasury Department requesting authority to purchase troubled assets from financial institutions [see note for September 20].
October 2008
October 3, 2008 | Federal Reserve Press Release
Wells Fargo announces a competing proposal to purchase Wachovia Corporation that does not require assistance from the FDIC.
October 3, 2008 | H.R. 1424 | Public Law 110-343
Congress passes and President Bush signs into law the Emergency Economic Stabilization Act of 2008 (Public Law 110-343), which establishes the $700 billion Troubled Asset Relief Program (TARP).
October 6, 2008 | Federal Reserve Press Release
The Federal Reserve Board announce that the Fed will pay interest on depository institutions’ required and excess reserve balances at an average of the federal funds target rate less 10 basis points on required reserves and less 75 basis points on excess reserves.
October 7, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces the creation of the Commercial Paper Funding Facility (CPFF), which will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle that will purchase three-month unsecured and asset-backed commercial paper directly from eligible issuers.
October 7, 2008 | FDIC Press Release
The FDIC announces an increase in deposit insurance coverage to $250,000 per depositor as authorized by the Emergency Economic Stabilization Act of 2008.
October 8, 2008 | Federal Reserve Press Release
The Federal Reserve Board authorizes the Federal Reserve Bank of New York to borrow up to $37.8 billion in investment-grade, fixed-income securities from American International Group (AIG) in return for cash collateral.
October 8, 2008 | Federal Reserve Press Release
The FOMC votes to reduce its target for the federal funds rate 50 basis points to 1.50 percent. The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 1.75 percent.
October 12, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces its approval of an application by Wells Fargo & Co. to acquire Wachovia Corporation.
October 13, 2008 | Federal Reserve Press Release
The FOMC increases existing swap lines with foreign central banks. The Bank of England, European Central Bank, and Swiss National Bank announce that they will conduct tenders of U.S. dollar funding at 7-, 28-, and 84-day maturities at fixed interest rates.
October 14, 2008 | Federal Reserve Press Release
The Federal Reserve announces additional details of the Commercial Paper Funding Facility (CPFF).
October 14, 2008 | Federal Reserve Press Release
The FOMC increases its swap line with the Bank of Japan.
October 14, 2008 | Treasury Department TARP Press Release | Additional Information
U.S. Treasury Department announces the Troubled Asset Relief Program (TARP) that will purchase capital in financial institutions under the authority of the Emergency Economic Stabilization Act of 2008. The U.S. Treasury will make available $250 billion of capital to U.S. financial institutions. This facility will allow banking organizations to apply for a preferred stock investment by the U.S. Treasury. Nine large financial organizations announce their intention to subscribe to the facility in an aggregate amount of $125 billion.
October 14, 2008 | FDIC TLGP Press Release
The FDIC creates a new Temporary Liquidity Guarantee Program to guarantee the senior debt of all FDIC-insured institutions and their holding companies, as well as deposits in non-interest-bearing deposit transaction through June 30, 2009.
October 21, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces creation of the Money Market Investor Funding Facility (MMIFF). Under the facility, the Federal Reserve Bank of New York provides senior secured funding to a series of special purpose vehicles to facilitate the purchase of assets from eligible investors, such as U.S. money market mutual funds. Among the assets the facility will purchase are U.S. dollar-denominated certificates of deposit and commercial paper issued by highly rated financial institutions with a maturity of 90 days or less.
October 22, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces that it will alter the formula used to determine the interest rate paid to depository institutions on excess reserve balances. The new rate will be set equal to the lowest FOMC target rate in effect during the reserve maintenance period less 35 basis points.
October 24, 2008 | PNC Press Release
PNC Financial Services Group Inc. purchases National City Corporation, creating the fifth largest U.S. bank.
October 28, 2008 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $125 billion in preferred stock in nine U.S. banks under the Capital Purchase Program.
October 28, 2008 | Federal Reserve Press Release
The FOMC and Reserve Bank of New Zealand establish a $15 billion swap line.
October 29, 2008 | Federal Reserve Press Release
The FOMC votes to reduce its target for the federal funds rate 50 basis points to 1.00 percent. The Federal Reserve Board reduces the primary credit rate 50 basis points to 1.25 percent.
October 29, 2008 | Federal Reserve Press Release
The FOMC also establishes swap lines with the Banco Central do Brasil, Banco de Mexico, Bank of Korea, and the Monetary Authority of Singapore for up to $30 billion each.
October 29, 2008 | IMF Press Release
The International Monetary Fund (IMF) announces the creation of a short-term liquidity facility for market-access countries.
November 2008
November 5, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces that it will alter the formula used to determine the interest rate paid to depository institutions on required and excess reserve balances. The rate on required reserves will be set equal to the average target federal funds rate over the reserve maintenance period. The rate on excess balances will be set equal to the lowest FOMC target rate in effect during the reserve maintenance period.
November 10, 2008 | Federal Reserve Press Release
The Federal Reserve Board approves the applications of American Express and American Express Travel Related Services to become bank holding companies.
November 10, 2008 | Federal Reserve Press Release | Treasury Department Press Release
The Federal Reserve Board and the U.S. Treasury Department announce a restructuring of the government’s financial support of AIG. The Treasury will purchase $40 billion of AIG preferred shares under the TARP program, a portion of which will be used to reduce the Federal Reserve’s loan to AIG from $85 billion to $60 billion. The terms of the loan are modified to reduce the interest rate to the three-month LIBOR plus 300 basis points and lengthen the term of the loan from two to five years. The Federal Reserve Board also authorizes the Federal Reserve Bank of New York to establish two new lending facilities for AIG: The Residential Mortgage- Backed Securities Facility will lend up to $22.5 billion to a newly formed limited liability company (LLC) to purchase residential MBS from AIG; the Collateralized Debt Obligations Facility will lend up to $30 billion to a newly formed LLC to purchase CDOs from AIG (Maiden Lane III LLC).
November 11, 2008 | Treasury Department Press Release
The U.S. Treasury Department announces a new streamlined loan modification program with cooperation from the Federal Housing Finance Agency (FHFA), Department of Housing and Urban Development, and the HOPE NOW alliance.
November 12, 2008 | Treasury Department Press Release
U.S. Treasury Secretary Paulson formally announces that the Treasury has decided not to use TARP funds to purchase illiquid mortgage-related assets from financial institutions.
November 14, 2008 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $33.5 billion in preferred stock in 21 U.S. banks under the Capital Purchase Program.
November 17, 2008 | Lincoln National Press Release | Hartford Press Release | Genworth Press Release
Three large U.S. life insurance companies seek TARP funding: Lincoln National, Hartford Financial Services Group, and Genworth Financial announce their intentions to purchase lenders/depositories and thus qualify as savings and loan companies to access TARP funding.
November 18, 2008 | Senate Hearing
Executives of Ford, General Motors, and Chrysler testify before Congress, requesting access to the TARP for federal loans.
November 20, 2008 | Fannie Mae Press Release | Freddie Mac Press Release
Fannie Mae and Freddie Mac announce that they will suspend mortgage foreclosures until January 2009.
November 21, 2008 | Treasury Department Press Release
The U.S. Treasury Department announces that it will help liquidate The Reserve Fund’s U.S. Government Fund. The Treasury agrees to serve as a buyer of last resort for the fund’s securities to ensure the orderly liquidation of the fund.
November 21, 2008 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $3 billion in preferred stock in 23 U.S. banks under the Capital Purchase Program.
November 23, 2008 | Federal Reserve Press Release | Summary of Terms
The U.S. Treasury Department, Federal Reserve Board, and FDIC jointly announce an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. Citigroup will issue preferred shares to the Treasury and FDIC in exchange for protection against losses on a $306 billion pool of commercial and residential securities held by Citigroup. The Federal Reserve will backstop residual risk in the asset pool through a non-recourse loan. In addition, the Treasury will invest an additional $20 billion in Citigroup from the TARP.
November 25, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces the creation of the Term Asset-Backed Securities Lending Facility (TALF), under which the Federal Reserve Bank of New York will lend up to $200 billion on a non-recourse basis to holders of AAA-rated asset-backed securities and recently originated consumer and small business loans. The U.S. Treasury will provide $20 billion of TARP money for credit protection.
November 25, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces a new program to purchase direct obligations of housing related government-sponsored enterprises (GSEs)—Fannie Mae, Freddie Mac and Federal Home Loan Banks—and MBS backed by the GSEs. Purchases of up to $100 billion in GSE direct obligations will be conducted as auctions among Federal Reserve primary dealers. Purchases of up to $500 billion in MBS will be conducted by asset managers.
November 26, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces approval of the notice of Bank of America Corporation to acquire Merrill Lynch and Company.
December 2008
December 2, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces that it will extend three liquidity facilities, the Primary Dealer Credit Facility (PDCF), the Asset-Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF), and the Term Securities Lending Facility (TSLF) through April 30, 2009.
December 3, 2008 | SEC Press Release
The SEC approves measures to increase transparency and accountability at credit rating agencies and thereby ensure that firms provide more meaningful ratings and greater disclosure to investors.
December 5, 2008 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $4 billion in preferred stock in 35 U.S. banks under the Capital Purchase Program.
December 10, 2008 | FDIC Press Release
The FDIC reiterates the guarantee of federal deposit insurance in the event of a bank failure.
December 11, 2008 | NBER Press Release
The Business Cycle Dating Committee of the National Bureau of Economic Research announces that a peak in U.S. economic activity occurred in December 2007 and that the economy has since been in a recession.
December 12, 2008 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $6.25 billion in preferred stock in 28 U.S. banks under the Capital Purchase Program.
December 15, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces that it has approved the application of PNC Financial Services to acquire National City Corporation.
December 16, 2008 | Federal Reserve Press Release
The FOMC votes to establish a target range for the effective federal funds rate of 0 to 0.25 percent. The Federal Reserve Board votes to reduce the primary credit rate 75 basis points to 0.50 percent. The Federal Reserve Board also establishes the interest rates on required reserve balances and excess balances at 0.25 percent for reserve maintenance periods beginning December 18, 2008.
December 19, 2008 | Treasury Department Press Release | General Motors Term Sheet | Chrysler Term Sheet
The U.S. Treasury Department authorizes loans of up to $13.4 billion for General Motors and $4.0 billion for Chrysler from the TARP.
December 19, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces revised terms and conditions of the Term Asset-Backed Securities Loan Facility (TALF). Among the revisions are an extension of TALF loans from maturities of one year to three years and an expansion of eligible ABS collateral.
December 19, 2008 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $27.9 billion in preferred stock in 49 U.S. banks under the Capital Purchase Program.
December 22, 2008 | Federal Reserve Press Release
The Federal Reserve Board approves the application of CIT Group Inc., an $81 billion financing company, to become a bank holding company. The Board cites “unusual and exigent circumstances affecting the financial markets” for expeditious action on CIT Group’s application.
December 23, 2008 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $15.1 billion in preferred stock from 43 U.S. banks under the Capital Purchase Program.
December 24, 2008 | Federal Reserve Press Release
The Federal Reserve Board approves the applications of GMAC LLC and IB Finance Holding Company, LLC (IBFHC) to become bank holding companies, on conversion of GMAC Bank, a $33 billion Utah industrial loan company, to a commercial bank. GMAC Bank is a direct subsidiary of IBFHC and an indirect subsidiary of GMAC LLC, a $211 billion company. The Board cites “unusual and exigent circumstances affecting the financial markets” for expeditious action on these applications. As part of the agreement, General Motors will reduce its ownership interest in GMAC to less than 10 percent.
December 29, 2008 | Treasury Department Press Release
The U.S. Treasury Department announces that it will purchase $5 billion in equity from GMAC as part of its program to assist the domestic automotive industry. The Treasury also agrees to lend up to $1 billion to General Motors "so that GM can participate in a rights offering at GMAC in support of GMAC's reorganization as a bank holding company." This commitment is in addition to the support announced on December 19, 2008.
December 30, 2008 | Federal Reserve Press Release
The Federal Reserve Board announces that it expects to begin to purchase mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae under a previously announced program in early January 2009 (see November 25, 2008).
December 30, 2008 | SEC Press Release
The U.S. Securities and Exchange Commission (SEC) releases a report that recommends against the suspension of fair value accounting standards. The report was mandated by the Emergency Economic Stabilization Act of 2008 (EESA).
December 31, 2008 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $1.91 billion in preferred stock from seven U.S. banks under the Capital Purchase Program.
January 2009
January 5, 2009 | Federal Reserve Bank of New York Press Release
The Federal Reserve Bank of New York begins purchasing fixed-rate mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae under a program first announced on November 25, 2008.
January 7, 2009 | Federal Reserve Press Release
The Federal Reserve Board announces two changes to the Money Market Investor Funding Facility (MMIFF) that 1) expand the set of institutions eligible to participate in the MMIFF and 2) reduce the minimum yield on assets eligible to be sold to the MMIFF.
January 8, 2009 | Moody’s Special Comment on FHLB
Moody’s Investor Services issues a report suggesting that the Federal Home Loan Banks are currently facing the potential for significant accounting write-downs on their $76.2 billion private-label MBS securities portfolio. According to Moody’s, only four of 12 Banks’ capital ratios would remain above regulatory minimums under a worst-case scenario.
January 9, 2009 | Congressional Oversight Panel Press Release
The Congressional Oversight Panel issues its second monthly report on the expenditure of the Troubled Asset Relief Program (TARP).
January 9, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $4.8 billion in preferred stock from 43 U.S. banks under the Capital Purchase Program.
January 12, 2009 | FDIC Press Release
The FDIC issues a letter to FDIC-supervised institutions calling on them to implement a process to monitor their use of capital injections, liquidity support and/or financing guarantees obtained through Treasury, FDIC, and Federal Reserve financial stability programs.
January 12, 2009 | White House Press Release | More Information
At the request of President-Elect Obama, President Bush submits a request to Congress for the remaining $350 billion in TARP funding for use by the incoming administration.
January 13, 2009 | Federal Home Loan Bank of Seattle Press Release
The Federal Home Loan Bank of Seattle reports that it will likely report a risk-based capital deficiency and suspend its dividend because of a decline in the market value of its mortgage-backed securities portfolio. The move follows a similar announcement on January 8 by the Federal Home Loan Bank of San Francisco.
January 16, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $1.4 billion in preferred stock from 39 U.S. banks under the Capital Purchase Program.
January 16, 2009 | Federal Reserve Press Release | Term Sheet
The U.S. Treasury Department, Federal Reserve, and FDIC announce a package of guarantees, liquidity access, and capital for Bank of America. The U.S. Treasury and the FDIC will enter a loss-sharing arrangement with Bank of America on a $118 billion portfolio of loans, securities, and other assets in exchange for preferred shares. In addition, and if necessary, the Federal Reserve will provide a non-recourse loan to back-stop residual risk in the portfolio. Separately, the U.S. Treasury will invest $20 billion in Bank of America from the TARP in exchange for preferred stock.
January 16, 2009 | Treasury Department Press Release
The U.S. Treasury Department, Federal Reserve and FDIC finalize terms of their guarantee agreement with Citigroup. (See announcement on November 23, 2008.)
January 16, 2009 | Treasury Department Press Release
The U.S. Treasury Department announces that it will lend $1.5 billion from the TARP to a special purpose entity created by Chrysler Financial to finance the extension of new consumer auto loans.
January 23, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $326 million in preferred stock from 23 U.S. banks under the Capital Purchase Program.
January 28, 2009 | NCUA Press Release
The National Credit Union Administration (NCUA) Board announces that the NCUA will guarantee uninsured shares at all corporate credit unions through February 2009 and establish a voluntary guarantee program for uninsured shares of credit unions through December 2010. The Board also approves a $1 billion capital purchase in U.S. Central Corporate Federal Credit Union. Corporate credit unions provide financing, check clearing, and other services to retail credit unions.
January 30, 2009 | Federal Reserve Press Release
The Board of Governors announces a policy to avoid preventable foreclosures on certain residential mortgage assets held, controlled or owned by a Federal Reserve Bank. The policy was developed pursuant to section 110 of the Emergency Economic Stabilization Act.
January 30, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $1.15 billion in preferred stock from 42 U.S. banks under the Capital Purchase Program.
February 2009
February 3, 2009 | Federal Reserve Press Release
The Federal Reserve announces the extension, through October 30, 2009, of the existing liquidity programs scheduled to expire on April 30, 2009. The Board of Governors and the FOMC note "continuing substantial strains in many financial markets." In addition, the swap lines between the Federal Reserve and other central banks are also extended to October 30, 2009. The expiration date for the TALF remains December 31, 2009, and the TAF does not have an expiration date.
February 6, 2009 | Federal Reserve Press Release
The Federal Reserve Board releases additional terms and conditions of the Term Asset-Backed Securities Loan Facility (TALF). Under the TALF, the Federal Reserve Bank of New York will lend up to $200 billion to eligible owners of certain AAA-rated asset-backed securities backed by newly and recently originated auto loans, credit card loans, student loans and SBA-guaranteed small business loans.
February 6, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $238.5 million in preferred stock from 28 U.S. banks under the Capital Purchase Program.
February 6, 2009 | Special Inspector General TARP
The Office of the Special Inspector General for the Troubled Asset Relief Program issues its quarterly report to Congress on the operation of the Troubled Asset Relief Program.
February 10, 2009 | Treasury Department Press Release | Fact Sheet
U.S. Treasury Secretary Timothy Geithner announces a Financial Stability Plan involving Treasury purchases of convertible preferred stock in eligible banks, the creation of a Public-Private Investment Fund to acquire troubled loans and other assets from financial institutions, expansion of the Federal Reserve’s Term Asset-Backed Securities Loan Facility (TALF), and new initiatives to stem residential mortgage foreclosures and to support small business lending.
February 10, 2009 | Federal Reserve Press Release
The Federal Reserve Board announces that is prepared to expand the Term Asset-Backed Securities Loan Facility (TALF) to as much as $1 trillion and broaden the eligible collateral to include AAA-rated commercial mortgage-backed securities, private-label residential mortgage-backed securities, and other asset-backed securities. An expansion of the TALF would be supported by $100 billion from the Troubled Asset Relief Program (TARP). The Federal Reserve Board will announce the date that the TALF will commence operations later this month.
February 13, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $429 million in preferred stock from 29 U.S. banks under the Capital Purchase Program.
February 17, 2009 | American Recovery and Reinvestment Act of 2009
President Obama signs into law the "American Recovery and Reinvestment Act of 2009", which includes a variety of spending measures and tax cuts intended to promote economic recovery.
February 17, 2009 | Treasury Department Press Release
The U.S. Treasury Department releases its first monthly survey of bank lending by the top 20 recipients of government investment through the Capital Purchase Program. The survey found that banks continued to originate, refinance and renew loans from the beginning of the program in October through December 2008.
February 18, 2009 | Executive Summary
President Obama announces The Homeowner Affordability and Stability Plan. The plan includes a program to permit the refinancing of conforming home mortgages owned or guaranteed by Fannie Mae or Freddie Mac that currently exceed 80 percent of the value of the underlying home. The plan also creates a $75 billion Homeowner Stability Initiative to modify the terms of eligible home loans to reduce monthly loan payments. In addition, the U.S. Treasury Department will increase its preferred stock purchase agreements with Fannie Mae and Freddie Mac to $200 billion, and increase the limits on the size of Fannie Mae and Freddie Mac's portfolios to $900 billion.
February 23, 2009 | Federal Reserve Press Release
The U.S. Treasury Department, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Office of Thrift Supervision, and the Federal Reserve Board issue a joint statement that the U.S. government stands firmly behind the banking system, and that the government will ensure that banks have the capital and liquidity they need to provide the credit necessary to restore economic growth. Further, the agencies reiterate their determination to preserve the stability of systemically important financial institutions.
February 24, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $365.4 million in preferred stock from 23 U.S. banks under the Capital Purchase Program.
February 25, 2009 | Federal Reserve Press Release
The Federal Reserve Board, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and Office of Thrift Supervision announce that they will conduct forward-looking economic assessments or "stress tests" of eligible U.S. bank holding companies with assets exceeding $100 billion. Supervisors will work with the firms to estimate the range of possible future losses and the resources to absorb such losses over a two-year period.The assessment process is expected to be completed by the end of April 2009.
February 26, 2009 | FDIC Quarterly Banking Profile
The FDIC announces that the number of "problem banks" increased from 171 institutions with $116 billion of assets at the end of the third quarter of 2008, to 252 insured institutions with $159 billion in assets at the end of fourth quarter of 2008. The FDIC also announces that there were 25 bank failures and five assistance transactions in 2008, which was the largest annual number since 1993.
February 26, 2009 | Fannie Mae Press Release
Fannie Mae reports a loss of $25.2 billion in the fourth quarter of 2008, and a full year 2008 loss of $58.7 billion. Fannie Mae also reports that on February 25, 2009, the Federal Housing Finance Agency submitted a request for $15.2 billion from the U.S. Treasury Department under the terms of the Senior Preferred Stock Purchase Agreement in order to eliminate Fannie Mae's net worth deficit as of December 31, 2008.
February 27, 2009 | Treasury Department Press Release
The U.S. Treasury Department announces its willingness to convert up to $25 billion of Citigroup preferred stock issued under the Capital Purchase Program into common equity. The conversion is contingent on the willingness of private investors to convert a similar amount of preferred shares into common equity. Remaining U.S. Treasury and FDIC preferred shares issued under the Targeted Investment Program and Asset Guarantee Program would be converted into a trust preferred security of greater structural seniority that would carry the same 8% cash dividend rate as the existing issue.
February 27, 2009 | FDIC Press Release
The Federal Deposit Insurance Corporation (FDIC) announces changes in its risk-based assessment system and a 20 basis point emergency special assessment on insured depository institutions to be collected on September 30, 2009.
February 27, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $394.9 million in preferred stock from 28 U.S. banks under the Capital Purchase Program.
March 2009
March 2, 2009 | AIG Press Release | Federal Reserve Press Release | Treasury Department Press Release
The U.S. Treasury Department and Federal Reserve Board announce a restructuring of the government's assistance to American International Group (AIG). Under the restructuring, AIG will receive as much as $30 billion of additional capital from the Troubled Asset Relief Program (TARP). In addition, the U.S. Treasury Department will exchange its existing $40 billion cumulative preferred shares in AIG for new preferred shares with revised terms that more closely resemble common equity. Finally, AIG's revolving credit facility with the Federal Reserve Bank of New York will be reduced from $60 billion to no less than $25 billion and the terms will be modified. In exchange, the Federal Reserve will receive preferred interests in two special purpose vehicles created to hold the outstanding common stock of two subsidiaries of AIG: American Life Insurance Company and American International Assurance Company Ltd. Separately, AIG reports a fourth quarter 2008 loss of $61.7 billion, and a loss of $99.3 billion for all of 2008.
March 3, 2009 | Federal Reserve Press Release
The U.S. Treasury Department and the Federal Reserve Board announce the launch of the Term Asset-Backed Securities Loan Facility (TALF). Under the program, the Federal Reserve Bank of New York will lend up to $200 billion to eligible owners of certain AAA-rated asset-backed securities backed by newly and recently originated auto loans, credit card loans, student loans and small business loans that are guaranteed by the Small Business Administration. The Federal Reserve and Treasury expect to include asset-backed securities backed by other types of loans in future monthly fundings. Subscriptions for funding in March will be accepted on March 17, 2009. Securitizations will be funded by the program on March 25, 2009. The program will hold monthly fundings through December 2009 or longer if extended by the Federal Reserve Board.
March 4, 2009 | Treasury Department Press Release
The U.S. Treasury Department announces guidelines to enable servicers to begin modifications of eligible mortgages under the Homeowner Affordability and Stability Plan.
March 6, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $284.7 million in preferred stock from 22 U.S. banks under the Capital Purchase Program.
March 11, 2009 | Federal Reserve Press Release
The Federal Reserve Board releases the minutes of its meetings from July 13, 2008 through December 16, 2008 concerning Federal Reserve liquidity facilities and other issues related to the financial turmoil.
March 11, 2009 | Freddie Mac Press Release
Freddie Mac announces that it had a net loss of $23.9 billion in the fourth quarter of 2008, and a net loss of $50.1 billion for 2008 as a whole. Further, Freddie Mac announces that its conservator has submitted a request to the U.S. Treasury Department for an additional $30.8 billion in funding for the company under the Senior Preferred Stock Purchase Agreement with the Treasury.
March 13, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $1.45 billion in preferred stock from 19 U.S. banks under the Capital Purchase Program.
March 17, 2009 | FDIC Press Release
The Federal Deposit Insurance Corporation (FDIC) decides to extend the debt guarantee portion of the Temporary Liquidity Guarantee Program (TLGP) from June 30, 2009 through October 31, 2009, and to impose a surcharge on debt issued with a maturity of one-year or more beginning in the second quarter of 2009 to gradually phase-out the program.
March 18, 2009 | Federal Reserve Press Release
The FOMC votes to maintain the target range for the effective federal funds at 0 to 0.25 percent. In addition, the FOMC decides to increase the size of the Federal Reserve's balance sheet by purchasing up to an additional $750 billion of agency mortgage-backed securities, bringing its total purchases of these securities to up to $1.25 trillion this year, and to increase its purchases of agency debt this year by up to $100 billion to a total of up to $200 billion. The FOMC also decides to purchase up to $300 billion of longer-term Treasury securities over the next six months to help improve conditions in private credit markets. Finally, the FOMC announces that it anticipates expanding the range of eligible collateral for the TALF (Term Asset-Backed Securities Loan Facility).
March 18, 2009 | Federal Reserve Bank of New York Press Release
The Federal Reserve Bank of New York releases more information on the Federal Reserve's plan to purchase Treasury securities. The Desk will concentrate its purchases in nominal maturities ranging from 2 to 10 years. The purchases will be conducted with the Federal Reserve's primary dealers through a series of competitive auctions and will occur two to three times a week. The Desk plans to hold the first purchase operation late next week.
March 19, 2009 | Treasury Department Press Release
The U.S. Department of the Treasury announces an Auto Supplier Support Program that will provide up to $5 billion in financing to the automotive industry. The Supplier Support Program will provide selected suppliers with financial protection on monies ("receivables") they are owed by domestic auto companies and the opportunity to access immediate liquidity against those obligations. Receivables created with respect to goods shipped after March 19, 2009, will be eligible for the program. Any domestic auto company is eligible to participate in the program. Any U.S.-based supplier that ships to a participating auto manufacturer on qualifying commercial terms may be eligible to participate in the program.
March 19, 2009 | Federal Reserve Press Release
The Federal Reserve Board announces an expansion of the eligible collateral for loans extended by the Term Asset-Backed Securities Loan Facility (TALF) to include asset-backed securities backed by mortgage servicing advances, loans or leases related to business equipment, leases of vehicle fleets, and floorplan loans. The new categories of collateral will be eligible for the April TALF funding.
March 19, 2009 | Federal Reserve Bank of New York Press Release
The Federal Reserve Bank of New York releases the initial results of the first round of loan requests for funding from the Term Asset-Backed Securities Loan Facility (TALF). The amount of TALF loans requested at the March 17-19 operation was $4.7 billion.
March 19, 2009 | FDIC Press Release
The FDIC completes the sale of IndyMac Federal Bank to OneWest Bank. OneWest will assume all deposits of IndyMac, and the 33 branches of IndyMac will reopen as branches of OneWest on March 20. As of January 31, 2009, IndyMac had total assests of $23.5 billion and total deposits of $6.4 billion. IndyMac reported fourth quarter 2008 losses of $2.6 billion, and the total estimated loss to the Deposit Insurance Fund of the FDIC is $10.7 billion. The FDIC had been named conservator of IndyMac FSB on July 11, 2008.
March 20, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $80.8 million in preferred stock from 10 U.S. banks under the Capital Purchase Program.
March 23, 2009 | Federal Reserve Press Release
The Federal Reserve and the U.S. Treasury issue a joint statement on the appropriate roles of each during the current financial crisis and into the future, and on the steps necessary to ensure financial and monetary stability. The four points of agreement are 1) The Treasury and the Federal Reserve will continue to cooperate in improving the functioning of credit markets and fostering financial stability; 2) The Federal Reserve should avoid credit risk and credit allocation, which are the province of fiscal authorities; 3) The need to preserve monetary stability, and that actions by the Federal Reserve in the pursuit of financial stability must not constrain the exercise of monetary policy as needed to foster maximum sustainable employment and price stability; and 4) The need for a comprehensive resolution regime for systemically critical financial institutions. In addition, the Treasury will seek to remove the Maiden Lane facilities from the Federal Reserve's balance sheet.
March 23, 2009 | Treasury Department Press Release
The U.S. Treasury Department announces details on the Public-Private Investment Program for Legacy Assets. The program will have two parts: a Legacy Loans Program and a Legacy Securities Program. The Legacy Loans Program will facilitate the creation of individual Public-Private Investment Funds which will purchase distressed loans that are currently held by banks. The U.S. Treasury intends to provide 50 percent of the equity capital for each fund. The FDIC will provide oversight for the formation, funding, and operation of these funds, and guarantee the debt issued by the funds. Under the Legacy Securities Program, the U.S. Treasury Department will approve up to five asset managers who will have the opportunity to raise private capital to acquire distressed securities currently held by banks. The U.S. Treasury will provide 50 percent of the equity capital for each investment fund and will consider requests for loans to each fund. In addition, the investment funds would also be eligible for non-recourse loans from the Term Asset-Backed Securities Facility (TALF).
March 25, 2009 | Treasury Department Press Release | Draft Legislation
The U.S. Treasury Department proposes legislation that would grant the U.S. government authority to put certain financial institutions into conservatorship or receivership to avert systemic risks posed by the potential insolvency of a significant financial firm. The authority is modeled on the resolution authority that the FDIC has with respect to banks and that the Federal Housing Finance Agency has with regard to the GSEs. The authority would apply to non-bank financial institutions that have the potential to pose systemic risks to the economy but that are not currently subject to the resolution authority of the FDIC or the Federal Housing Finance Agency.
March 26, 2009 | Treasury Department Press Release
The U.S. Treasury Department outlines a framework for comprehensive regulatory reform that focuses on containing systemic risks in the financial system. The framework calls for assigning responsibility over all systemically-important firms and critical payment and settlement systems to a single independent regulator. Further, it calls for higher standards on capital and risk management for systemically-important firms; for requiring all hedge funds above a certain size to register with a financial regulator; for a comprehensive framework of oversight, protection and disclosure for the over-the-counter derivatives market; for new requirements for money market funds; and for stronger resolution authority covering all financial institutions that pose systemic risks to the economy.
March 27, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury Department purchases a total of $193 million in preferred stock from 14 U.S. banks under the Capital Purchase Program.
March 31, 2009 | GAO Report: March 2009 Status of Efforts to Address Transparency and Accountability Issues (GAO-09-504)
The General Accounting Office (GAO) releases a report on the status of efforts to address transparency and accountability issues for the Troubled Asset Relief Program (TARP). The report provides information about the nature and purpose of TARP funding through March 27, 2009, the performance of the Treasury Department's Office of Financial Stability, and TARP performance indicators.
March 31, 2009 | Treasury Department Press Release
The U.S. Treasury Department announces an extension of its temporary Money Market Funds Guarantee Program through September 18, 2009. This program will continue to provide coverage to shareholders up to the amount held in participating money market funds as of the close of business on September 19, 2008. The Program currently covers over $3 trillion of combined fund assets and was scheduled to end on April 30, 2009.
March 31, 2009
Four bank holding companies announced that they had redeemed all of the preferred shares that they had issued to the U.S. Treasury under the Capital Purchase Program of the Troubled Asset Relief Program (TARP). The four banks are Bank of Marin Bancorp (Novato, CA), Iberiabank Corporation (Lafayette, LA), Old National Bancorp (Evansville, IN), and Signature Bank (New York, NY).
April 2009
April 1, 2009 | Board of Governors' Letter to Congressional Oversight Panel | Response to Congressional Oversight Panel
Federal Reserve Chairman Bernanke and Federal Reserve Bank of New York President Dudley respond to questions from the Congressional Oversight Panel about the Term Asset-Backed Loan Facility (TALF), explaining in detail the rationale and operation of the TALF.
April 2, 2009 | FASB Press Release
The Financial Accounting Standards Board approves new guidance to ease the accounting of troubled assets held by banks and other financial companies. In particular, the Board provides new guidance on how to determine the fair value of assets for which there is no active market.
April 3, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $54.8 million in preferred stock from 10 U.S. banks under the Capital Purchase Program.
April 6, 2009 | Federal Reserve Press Release
The Federal Reserve announces new reciprocal currency agreements (swap lines) with the Bank of England, the European Central Bank, the Bank of Japan and the Swiss National Bank that would enable the provision of foreign currency liquidity by the Federal Reserve to U.S. financial institutions.
April 7, 2009 | Congressional Oversight Panel Press Release
The Congressional Oversight Panel releases its monthly report on the Troubled Asset Relief Program (TARP). This report, entitled "Assessing Treasury's Strategy: Six Months of TARP," provides information about expenditures and commitments to date of TARP funds, evaluates the Treasury Department's strategy for improving the condition and functioning of financial institutions and markets, and discusses potential policy alternatives.
April 9, 2009 | FASB Press Release
The Financial Accounting Standards Board issues three final Staff Positions intended to provide additional application guidance and enhance disclosures regarding fair value measurements and impairments of securities.
April 10, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $22.8 million in preferred stock from 5 U.S. banks under the Capital Purchase Program.
April 17, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $40.9 million in preferred stock from 6 U.S. banks under the Capital Purchase Program.
April 21, 2009 | Special Inspector General TARP
The Office of the Special Inspector General for the Troubled Asset Relief Program issues its quarterly report to Congress on the operation of the Troubled Asset Relief Program.
April 23, 2009 | Federal Reserve Press Release
The Federal Reserve publishes the annual financial statements for the combined Federal Reserve Banks, the 12 individual Federal Reserve Banks, the limited liability companies that were created in 2008 to respond to strains in the financial markets, and the Board of Governors for the years ended December 31, 2008 and 2007.
April 24, 2009 | Federal Reserve Press Release
The Federal Reserve Board publishes a white paper describing the process and methodologies employed by federal banking supervisory authorities in their forward looking assessment ("stress test") of large U.S. bank holding companies.
April 24, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $121.8 million in preferred stock from 12 U.S. banks under the Capital Purchase Program.
May 2009
May 1, 2009 | Federal Reserve Press Release
The Federal Reserve Board announces that, starting in June, commercial mortgage-backed securities (CMBS) and securities backed by insurance premium finance loans will be eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF). The Board also authorizes TALF loans with maturities of five years. Currently, all TALF loans have maturities of three years. TALF loans with five-year maturities will be available for the June funding to finance purchases of CMBS, ABS backed by student loans, and ABS backed by loans guaranteed by the Small Business Administration.
May 1, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $45.5 million in preferred stock from 7 U.S. banks under the Capital Purchase Program.
May 7, 2009 | Federal Reserve Press Release
The Federal Reserve releases the results of the Supervisory Capital Assessment Program ("stress test") of the 19 largest U.S. bank holding companies. The assessment finds that the 19 firms could lose $600 billion during 2009 and 2010 if the economy were to track the more adverse scenario considered in the program. The assessment also finds that 9 of the 19 firms already have adequate capital to maintain Tier 1 capital in excess of 6 percent of total assets and common equity capital in excess of 4 percent under the more adverse scenario. Ten firms would need to add $185 billion to their capital to maintain adequate buffers under the more adverse scenario. However, transactions and revenues since the end of 2008 have reduced to $75 billion the additional capital that these firms must raise in order to establish the capital buffer required under the program. A bank holding company needing to augment its capital buffers will be required to develop a detailed plan to be approved by its primary supervisor within 30 days and to implement its plan to raise additional capital by early November 2009.
May 8, 2009 | Fannie Mae Press Release
Fannie Mae reports a loss of $23.2 billion for the first quarter of 2009. The Director of the Federal Housing Finance Agency (FHFA), which has been conservator of Fannie Mae since September 6, 2008, requests $19 billion from the U.S. Treasury Department under the terms of the Senior Preferred Stock Purchase Agreement between Fannie Mae and the Treasury to eliminate the firm's net worth deficit. Separately, on May 6, 2009, the Treasury Department and the FHFA enter into an amendment to the Senior Preferred Stock Purchase Agreement to increase the Treasury's funding commitment to Fannie Mae to $200 billion from $100 billion, increase the allowed size of Fannie Mae's mortgage portfolio to $900 billion, and to increase the firm's allowable debt outstanding to $1,080 billion.
May 8, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $42 million in preferred stock from 7 U.S. banks under the Capital Purchase Program.
May 12, 2009 | Freddie Mac Press Release
Freddie Mac reports a first quarter 2009 loss of $9.9 billion, and a net worth deficit of $6.0 billion as of March 31, 2009. The Director of the Federal Housing Finance Agency (FHFA) submits a request to the U.S. Treasury .Department for funding in the amount of $6.1 billion in his capacity as conservator of Freddie Mac. Further, on May 6, 2009, the Treasury Department and FHFA, acting on Freddie Mac's behalf as its conservator, entered into an amendment to the Purchase Agreement between the company and Treasury that increases the Treasury's funding commitment to the firm to $200 billion from $100 billion, increases the allowed size of Freddie Mac's mortgage-related investments portfolio by $50 billion to $900 billion, and increases the firm's allowable debt outstanding to $1,080 billion until December 31, 2010.
May 13, 2009 | Treasury Department Press Release
The U.S. Treasury Department proposes amendments to the Commodity Exchange Act and securities laws to enhance government regulation of over-the-counter (OTC) derivatives markets. The proposed changes include requirements that all standardized OTC derivatives be cleared through regulated central counterparties, and that all OTC derivatives dealers and all other firms whose activities in those markets create large exposures to counterparties be subject to prudential supervision and regulation. In addition, the U.S. Treasury Department proposes new recordkeeping and reporting requirements on all OTC derivatives, and increased authority for the Commodity Futures Trading Commission to regulate OTC derivatives trading.
May 15, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $107.6 million in preferred stock from 14 U.S. banks under the Capital Purchase Program.
May 19, 2009 | Federal Reserve Press Release
The Federal Reserve Board announces that, starting in July, certain high-quality commercial mortgage-backed securities issued before January 1, 2009 ("legacy CMBS") will become eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF). The objective of the expansion is to restart the market for legacy securities and, by doing so, stimulate the extension of new credit by helping to ease balance sheet pressures on banks and other financial institutions. Eligible CMBS must have a triple-A rating from at least two major rating services.
May 20, 2009 | FDIC Press Release
President Obama signs the Helping Families Save Their Homes Act of 2009, which temporarily raises FDIC deposit insurance coverage from $100,000 per depositor to $250,000 per depositor. The new coverage at FDIC-insured institutions will expire on January 1, 2014, when the amount will return to its standard level of $100,000 per depositor for all account categories except IRAs and other certain retirement accounts. This action supersedes the October 3, 2008 changes.
May 21, 2009 | FDIC Press Release
The Federal Deposit Insurance Corporation (FDIC) announces the approval of GMAC Financial Services to participate in the Temporary Liquidity Guarantee Program (TLGP). GMAC will be allowed to issue up to $7.4 billion in new FDIC-guaranteed debt.
May 21, 2009 | Standard and Poor's Press Release
Standard and Poor's Ratings Services lowers its outlook on the United Kingdom government debt from stable to negative because of the estimated fiscal cost of supporting the nation's banking system. S&P estimates that this cost could double the government's debt burden to about 100 percent of GDP by 2013.
May 22, 2009 | Federal Reserve Press Release
The Federal Reserve Board announces the adoption of a final rule that will allow bank holding companies to include in their Tier 1 capital without restriction senior perpetual preferred stock issued to the U.S. Treasury Department under the Troubled Asset Relief Program (TARP).
May 22, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $108 million in preferred stock from 12 U.S. banks under the Capital Purchase Program.
May 27, 2009 | FDIC Quarterly Banking Profile
The FDIC announces that the number of "problem banks" increased from 252 insured institutions with $159 billion in assets at the end of fourth quarter of 2008, to 305 institutions with $220 billion of assets at the end of the first quarter of 2009. The FDIC also announces that there were 21 bank failures in the first quarter of 2009, which is the largest number of failed institutions in a quarter since the first quarter of 1992.
May 29, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $89 million in preferred stock from 8 U.S. banks under the Capital Purchase Program.
June 2009
June 1, 2009 | GM Press Release
As part of a new restructuring agreement with the U.S. Treasury and the governments of Canada and Ontario, General Motors Corporation and three domestic subsidiaries announce that they have filed for relief under Chapter 11 of the U.S. Bankruptcy Code.
June 1, 2009 | Federal Reserve Press Release
The Federal Reserve Board announces the criteria it will use to evaluate redemption applications from the 19 bank holding companies that received U.S. Treasury capital as part of the Supervisory Capital Assessment Program. An initial set of redemption approvals are expected to be announced during the week of June 8.
June 3, 2009 | FDIC Press Release
The FDIC announces that the previously planned sale of impaired bank assets under the Legacy Loans Program (LLP) will be postponed. According to Chairman Bair: "Banks have been able to raise capital without having to sell bad assets through the LLP, which reflects renewed investor confidence in our banking system."
June 5, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $40 million in preferred stock from 3 U.S. bank under the Capital Purchase Program.
June 9, 2009 | Treasury Department Press Release
The U.S. Treasury Department announces that 10 of the largest U.S. financial institutions participating in the Capital Purchase Program have met the requirements for repayment established by the primary federal banking supervisors. If these firms choose to repay the capital acquired through the program, the Treasury will receive up to $68 billion in repayment proceeds.
June 10, 2009 | Federal Reserve Press Release | Credit and Liquidity Report
The Federal Reserve issues the first of an ongoing series of monthly reports on its credit and lending facilities. The report provides information on borrowing patterns and collateral for many of the Federal Reserve's credit and liquidity programs, including the number of borrowers and borrowing amounts by type of institution, collateral by type and credit rating, and data on the concentration of borrowing. The report also includes information on liquidity swap usage by country, quarterly income for important classes of Federal Reserve assets, and asset distribution and other information on the limited liability companies created to avert the disorderly failures of Bear Stearns and American International Group (AIG).
June 12, 2009 | Federal Reserve Press Release
The Federal Reserve announces that it is reviewing regulatory capital requirements for banking organizations in response to a decision by the Financial Accounting Standards Board to address weaknesses in accounting and disclosure standards for off-balance sheet vehicles.
June 12, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $39 million in preferred stock from 7 U.S. Banks under the Capital Purchase Program.
June 17, 2009 | U.S. Treasury Department Regulatory Reform Proposal
The U.S. Treasury Department releases a proposal for reforming the financial regulatory system. The proposal calls for the creation of a Financial Services Oversight Council and for new authority for the Federal Reserve to supervise all firms that pose a threat to financial stability, including firms that do not own a bank.
June 19, 2009 | Treasury Department CPP Transaction Report
The U.S. Treasury purchases a total of $84.7 million in preferred stock from 10 U.S. banks under the Capital Purchase Program.
June 24, 2009 | SEC Press Release
The Securities and Exchange Commission proposes rule amendments designed to strengthen the regulatory framework for money market funds. The proposed rules are intended to reduce the risk in money market funds by introducing liquidity requirements, shortening the average maturity limits, and increasing the requirements for credit quality. In addition, the proposals would require the monthly reporting of portfolio holdings and will allow suspension of redemptions if a fund "breaks the buck."
June 24, 2009 | Federal Reserve Press Release
The Federal Reserve announces extensions of and modifications to a number of its liquidity programs. The expiration date of 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) is extended through February 1, 2010. The expiration date of the Term Asset-Backed Securities Loan Facility (TALF) remains set at December 31, 2009. In addition, the temporary reciprocal currency arrangements (swap lines) between the Federal Reserve and other central banks have been extended to February 1, 2010. The Federal Reserve also announces that the amounts auctioned at the biweekly auctions of Term Auction Facility (TAF) funds will be reduced from $150 billion to $125 billion, effective with the auction to be held on July 13, 2009.
June 25, 2009 | AIG Press Release
American International Group (AIG) announces that it has entered into an agreement with the Federal Reserve Bank of New York to reduce the debt AIG owes the Federal Reserve Bank of New York by $25 billion. The Federal Reserve Bank of New York will receive preferred interests of $16 billion and $9 billion, respectively, in two new special purpose vehicles holding the equity of AIG subsidiaries American International Assurance Company and American Life Insurance Company.
June 26, 2009 | Treasury Department Press Release
The U.S. Treasury announces its policy regarding the disposition of warrants acquired under the Capital Purchase Program. For publicly traded companies, the Treasury received warrants to purchase common shares of stock; these warrants have not been exercised. The Treasury's policy allows banks to repurchase warrants following a multi-step process to determine fair market value.
June 30, 2009 | Treasury Department Press Release
The U.S. Treasury proposes a bill to Congress that would create a new Consumer Financial Protection Agency. The bill would transfer all current consumer protection functions of the Federal Reserve System, Comptroller of the Currency, Office of Thrift Supervision, FDIC, FTC, and the National Credit Union Administration to the new agency. In addition, Treasury proposes amendments to the Federal Trade Commission Act with regards to coordination with the proposed Consumer Financial Protection Agency.
July 2009
July 8, 2009 | Treasury Department Press Release
The U.S. Treasury Department, Federal Reserve and the FDIC announce the details of the Legacy Securities Public-Private Investment Program (PPIP). Under this program, the U.S. Treasury will invest up to $30 billion with private sector fund managers and private investors for the purpose of purchasing legacy securities. The Legacy Securities PPIP will participate in the market for commercial mortgage-backed securities and non-agency residential mortgage-backed securities. To qualify for purchase, these securities must have been issued prior to 2009 and have originally been rated AAA (or an equivalent rating by two or more nationally recognized statistical rating organizations) without ratings enhancement and must be secured directly by the actual mortgage loans, leases, or other assets ("Eligible Assets"). The U.S. Treasury pre-qualified nine firms to participate as fund managers. The fund managers will be required to raise at least $500 million of capital from private investors; the equity capital will be matched by U.S. Treasury. In addition, the fund manager must also invest a minimum of $20 million of firm capital. Upon raising this private capital the fund managers can begin purchasing Eligible Assets.
July 10, 2009 | Congressional Oversight Panel Press Release | Congressional Oversight Panel Reports: TARP Repayments, Including the Repurchase of Stock Warrants (July 10, 2009)
The Congressional Oversight Panel for the Troubled Asset Relief Program releases its July report, which examines several issues raised by the repayment of TARP funds by institutions that have received TARP assistance.
July 15, 2009 | House Republicans Press Release | Public Law | House Democrats Press Release
Congress announces the appointment of members to the Financial Crisis Inquiry Commission. The Commission was established by the Fraud Enforcement and Recovery Act of 2009 (Public Law 111-21), which was enacted on May 20, 2009. The Commission is required to report its findings on the causes of the financial crisis to Congress by December 15, 2010.
July 21, 2009 | Special Inspector General TARP
The Office of the Special Inspector General for the Troubled Asset Relief Program issues its quarterly report to Congress on the operation of the Troubled Asset Relief Program.
July 21, 2009 | Federal Reserve Press Release
Chairman Ben Bernanke presents the second of the Federal Reserve's semi-annual Monetary Policy Report to the Congress. Chairman Bernanke testifies that "the extreme risk aversion of last fall has eased somewhat, and investors are returning to private credit markets."
July 23, 2009 | Federal Reserve Press Release
The Federal Reserve Board proposes significant changes to Regulation Z (Truth in Lending) intended to improve the disclosures consumers receive in connection with closed-end mortgages and home-equity lines of credit. Among other changes, the Board's proposal would improve the disclosure of the annual percentage rate on closed-end mortgages and require lenders to show consumers how much their monthly payments might increase for adjustable-rate mortgages. The proposal would also prohibit payments to a mortgage broker or loan officer that are based on a loan's interest rate or other terms, and prohibit lenders from steering consumers to transactions that are not in their interest in order to increase the lender's compensation.
July 23, 2009 | Citigroup Press Release
Citigroup announces that it completed a previously announced exchange offer with private investors of convertible preferred securities and a previously announced matching exchange offer with the U.S. Government. Citigroup exchanged $12.5 billion in aggregate liquidation value of convertible preferred securities held by private holders for interim securities and warrants, and made a similar exchange of $12.5 billion in aggregate liquidation value of convertible preferred securities held by the U.S. Government for interim securities and warrants. The interim securities will convert to common stock, subject to shareholder authorization of the increase in Citigroup's authorized common stock.
July 24, 2009 | Federal Reserve Press Release
The Federal Reserve announces that the amounts of Term Auction Facility (TAF) credit offered at each of the two auctions in August will be reduced to $100 billion from $125 billion in July. The reduction is consistent with the expectation that TAF auction amounts would be reduced gradually further in coming months if market conditions continue to improve.
July 26, 2009 | Citigroup Press Release
Citigroup announces the preliminary results of its offers to exchange its publicly held convertible and non-convertible preferred and trust preferred securities for newly issued shares of its common stock. Citigroup also announces that it expects to complete a further exchange with the U.S. Government of $12.5 billion in aggregate liquidation preference of Citigroup preferred stock, and that in aggregate, approximately $58 billion in aggregate liquidation value of preferred and trust preferred securities will have been exchanged to common stock as a result of the completion of all the exchange offers.
August 2009
August 6, 2009 | Fannie Mae Press Release
Fannie Mae reports a loss of $14.8 billion in the second quarter of 2009. The Director of the Federal Housing Finance Agency, which has been acting as Fannie Mae's conservator since September 6, 2008, requests $10.7 billion from the U.S. Treasury Department under the terms of the senior preferred stock purchase agreement between Fannie Mae and the Treasury in order to eliminate the firm's net worth deficit. Under the agreement, the Treasury will have provided $45.9 billion of capital to Fannie Mae to cover net worth deficits through the second quarter of 2009.
August 17, 2009 | Federal Reserve Press Release
The Federal Reserve Board and the Treasury Department announce an extension to the Term Asset-Backed Securities Loan Facility (TALF). Eligible loans against newly issued asset-backed securities (ABS) and legacy commercial mortgage-backed securities (CMBS) can now be made through March 31, 2010. Because new CMBS deals can take a significant amount of time to arrange, TALF lending against newly issued CMBS was approved through June 30, 2010. The previously-announced deadline for TALF loans was December 31, 2009. The Federal Reserve and the Treasury said they do not anticipate any further additions to the types of collateral that are eligible for the TALF.
August 25, 2009 | White House Press Release
President Obama nominates Ben S. Bernanke for a second term as Chairman of the Board of Governors of the Federal Reserve System.
August 27, 2009 | FDIC Press Release
The FDIC announces that the number of "problem banks" increased from 305 insured institutions
with $220 billion in assets at the end of first quarter of 2009, to 416 institutions with $299.8 billion of
assets at the end of the second quarter of 2009.
with $220 billion in assets at the end of first quarter of 2009, to 416 institutions with $299.8 billion of
assets at the end of the second quarter of 2009.
August 28, 2009 | Federal Reserve Press Release
The Federal Reserve announces that the amounts of Term Auction Facility (TAF) credit offered at each of the two auctions in September will be reduced to $75 billion from $100 billion in August. This follows on a reduction from $125 billion in July. The reduction is consistent with expectations that the TAF auction amounts will continue to decrease as market conditions improve.
September 2009
September 9, 2009 | FDIC Press Release
The FDIC Board adopts a Notice of Proposed Rulemaking (NPR) that reaffirms the expiration of the debt guarantee component of the Temporary Liquidity Guarantee Program (TLGP) on October 31st, 2009. Under the NPR, the Federal Deposit Insurance Corporation will seek comment on whether a temporary emergency facility should be left in place for six months after the expiration of the current program. There are two alternatives contemplated under the NPR. Under Alternative A, the DGP would expire as provided for by the FDIC's existing regulation on October 31st, 2009 with FDIC's guarantee for such debt expiring no later than December 31, 2012. Under Alternative B, the Debt Guarantee Program will expire as provided for in the current regulation, however, the FDIC would establish a six-month emergency guarantee facility to be made available in emergency circumstances to insured depository institutions (IDSs) and certain other entities participating in the DGP upon application to the FDIC and with the approval of the Chairman, after consultation with the Board.
September 14, 2009 | Treasury Department Press Release
The U.S. Treasury releases the report "The Next Phase of Government Financial Stabilization and Rehabilitation Policies." This report focuses on winding down those programs that were once deemed necessary to prevent systemic failure in the financial markets and the broader economy.
September 16, 2009 | FDIC Press Release
The Federal Deposit Insurance Corporation (FDIC) announces the signing of a bid confirmation letter with Residential Credit Solutions in a pilot sale of receivership assets under the Legacy Loans Program of the Public-Private Investment Program. The Public-Private Investment Program is being developed to help banks remove troubled assets from their balance sheets. The pilot sale was conducted to test the funding mechanism for the Legacy Loans Program.
September 18, 2009 | Treasury Department Press Release
The U.S. Department of the Treasury announces the expiration of the Guarantee Program for Money Market Funds, which was implemented in the wake of the failure of Lehman Brothers in September 2008. The Program was initially established for a three-month period that could be extended up through September 18, 2009. Since its inception, the Treasury had no losses under the Program and earned approximately $1.2 billion in participation fees.
September 29, 2009 | FDIC Press Release
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) adopts a Notice of Proposed Rulemaking (NPR) that would require insured institutions to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009 and for all of 2010, 2011 and 2012. The FDIC estimates that the total prepaid assessments collected would be approximately $45 billion. The FDIC Board also votes to adopt a uniform three-basis point increase in assessment rates effective on January 1, 2011, and extend the restoration period from seven to eight years.
October 2009
October 14, 2009
The Dow Jones Industrial Average closes above 10,000 for the first time since October 3, 2008.
October 21, 2009 | Special Inspector General TARP
The Office of the Special Inspector General for the Troubled Asset Relief Program issues its quarterly report to Congress on the operation of the Troubled Asset Relief Program.
October 22, 2009 | U.S. Treasury Department Press Release
The Special Master for TARP Executive Compensation releases determinations on the compensation packages for the top 25 most highly paid executives at the seven firms that received exceptional TARP assistance (AIG, Citigroup, Bank of America, Chrysler, Chrysler Financial, GM, and GMAC).
October 22, 2009 | Federal Reserve Press Release
The Federal Reserve Board issues a proposal designed to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of their organizations. The proposal includes two supervisory initiatives. One, applicable to 28 large, complex banking organizations, will review each firm's policies and practices to determine their consistency with the principles for risk-appropriate incentive compensation set forth in the proposal. Second, supervisors will review compensation practices at regional, community, and other banking organizations not classified as large and complex as part of the regular, risk-focused examination process.
November 2009
November 1, 2009 | CIT Bankruptcy Filing
CIT Group, Inc., files for bankruptcy protection under Chapter 11 of the bankruptcy code. The U.S. Government purchased $2.3 billion of CIT preferred stock in December 2008 under the Troubled Asset Relief Program (TARP). The firm's prepackaged bankruptcy is expected to wipe out the equity stakes of CIT's current shareholders, including the U.S. Government.
November 5, 2009 | Fannie Mae Press Release
Fannie Mae reports a net loss of $18.9 billion in the third quarter of 2009, compared with a loss of $14.8 billion in the second quarter of 2009. The loss resulted in a net worth deficit of $15.0 billion as of September 30,2009. The Acting Director of the Federal Housing Finance Agency submitted a request for $15.0 billion from the U.S. Treasury to cover the deficit. Fannie Mae has lost a total of $111 billion since September, 2008, when the firm was placed under government conservatorship.
November 9, 2009 | Federal Reserve Press Release
The Federal Reserve Board announces that 9 of the 10 bank holding companies that were determined in the Supervisory Capital Assessment Program earlier this year to need to raise capital or improve the quality of their capital now have increased their capital sufficiently to meet or exceed their required capital buffers. GMAC was the one firm that to date has not raised enough capital to meet its required capital buffer.
November 17, 2009 | Federal Reserve Press Release
Citing continued improvement in financial market conditions, the Federal Reserve Board approves a reduction in the maximum maturity of primary credit loans at the discount window for depository institutions to 28 days from 90 days effective January 14, 2010. The Federal Reserve had lengthened the maximum maturity of primary credit loans first to 30 days on August 17, 2007, and then to 90 days on March 16, 2008.
December 2009
December 1, 2009 | AIG Press Release
AIG announces that it has closed two transactions with the Federal Reserve Bank of New York. This agreement reduces the debt AIG owes the Federal Reserve Bank of New York by $25 billion in exchange for preferred equity interests in newly formed subsidiaries.
December 2, 2009 | Bank of America Press Release
Bank of America announces that it will repurchase the entire $45 billion of cumulative preferred stock issued to the U.S. Treasury under the Troubled Asset Relief Program (TARP) after the completion of a securities offering.
December 9, 2009 | U.S. Treasury Department Press Release
U.S. Treasury Secretary Timothy Geithner sends a letter to Congressional leaders outlining the Administration's exit strategy for the Troubled Asset Relief Program (TARP). Secretary Geithner announces that the program will be extended to October 3, 2010, and focus on three areas: 1) foreclosure mitigation; 2) providing capital to small and community banks; and 3) possible increases in the Treasury Department's commitment to the Term Asset-Backed Securities Loan Facility (TALF).
December 11, 2009 | U.S. House of Representatives Press Release
The U.S. House of Representatives approves legislation that would create a Financial Stability Council to identify financial firms that pose systemic risk and which will be subject to increased oversight and regulation. The legislation would also create a Consumer Financial Protection Agency, impose new regulations on over-the-counter financial derivatives, require the registration of hedge funds with the Securities Exchange Commission, and establish an orderly process for shutting down large, failing financial institutions.
December 14, 2009 | Citigroup Press Release
Citigroup announces that it has reached an agreement with the U.S. Government to repay the remaining $20 billion in TARP trust preferred securities issued to the U.S. Treasury. Citi will issue $20.5 billion of capital and debt, and the U.S. Treasury will sell up to $5 billion of the common stock it holds in a concurrent secondary offering.
December 14, 2009 | Wells Fargo Press Release
Wells Fargo and Company announces that it will redeem the $25 billion of preferred stock issued to the U.S. Treasury under the TARP, upon successful completion of a $10.4 billion common stock offering.
December 24, 2009 | U.S. Treasury Department Press Release
The U.S. Treasury Department announces the removal of caps on the amount of preferred stock that the Treasury may purchase in Fannie Mae and Freddie Mac to ensure that each firm maintains a positive net worth. Previously, such purchases had been capped at $200 billion for each firm. The Treasury Department announces that the removal of these caps "should leave no uncertainty about the Treasury's commitment to support these firms."
December 28, 2009 | Federal Reserve Press Release
The Federal Reserve Board proposes amendments to Regulation D (Reserve Requirements of Depository Institutions) that would enable the establishment of a term deposit facility. Under the proposal, the Federal Reserve Banks would offer interest-bearing term deposits to eligible institutions through an auction mechanism.
January 2010
January 7, 2010 | Federal Reserve Press Release
The Federal Reserve releases an advisory reminding depository institutions of supervisory expectations for sound practices in managing interest rate risk. This advisory, adopted along with the other financial regulators, reiterates the importance of effective corporate governance, policies and procedures, risk measuring and monitoring systems, stress testing, and internal controls related to the interest rate risk exposures of depository institutions.
January 12, 2010 | Federal Reserve Press Release
The Federal Reserve Board announces preliminary unaudited results indicating that the Reserve Banks transferred approximately $46.1 billion of their estimated 2009 net income of $52.1 billion to the U.S. Treasury. This represents a $14.4 billion increase over the 2008 results. The increase was primarily due to increased earnings on securities holdings during 2009.
January 13, 2010 | Financial Crisis Inquiry Commission Hearings
The Financial Crisis Inquiry Commission (FCIC), created by Section 5 of the Fraud Enforcement and Recovery Act of 2009, holds its first public hearing in Washington, D.C.
January 19, 2010 | Federal Reserve Bank of New York Press Release
In response to a request from the House Committee on Oversight and Government Reform, the Federal Reserve Bank of New York provides documents that relate to Maiden Lane III LLC and the public disclosures made by American International Group, Inc. (AIG) in December 2008 concerning the transactions entered into by Maiden Lane III. Maiden Lane III is a limited liability company that was formed in the fourth quarter of 2008 to facilitate a restructuring of the New York Fed's financial support to AIG. The New York Fed extended credit to Maiden Lane III to purchase multi-sector collateralized debt obligations from certain counterparties of AIG Financial Products Corp.
January 21, 2010 | White House Press Release
President Obama proposes new restrictions on the trading activities and market shares of commercial banks. Specifically, he calls for prohibiting banks from owning, investing in or sponsoring hedge funds, private equity funds, or proprietary trading operations for their own profit. He also calls for broader market share limits on commercial banks.
February 2010
February 1, 2010 | Federal Reserve Press Release
The Commercial Paper Funding Facility, Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, Primary Dealer Credit Facility, and Term Securities Lending Facility programs expire.
February 18, 2010 | Federal Reserve Press Release
The Federal Reserve Board announces an increase in the primary credit rate (generally referred to as the discount rate) from 1/2 percent to 3/4 percent, effective February 19, 2010. The Board also announces that, effective on March 18, the typical maximum maturity for primary credit loans will be shortened to overnight. In addition, the Board announces that it has raised the minimum bid rate for the Term Auction Facility (TAF) by 1/4 percentage point to 1/2 percent. The final TAF auction will be on March 8, 2010. The Board cites continued improvement in financial market conditions for the changes to the terms of its discount window lending programs.
February 23, 2010 | U.S. Treasury Department Press Release
The U.S. Treasury increases the balance in the Supplementary Financing Account, a product of the Supplementary Financing Program, from $5 billion to $200 billion. This will return the balance back to the level maintained between February and September 2009.
February 23, 2010 | FDIC Press Release
The FDIC announces that the number of "problem banks" increased from 552 insured institutions with $345.9 billion in assets at the end of third quarter of 2009, to 702 institutions with $402.8 billion of assets at the end of the fourth quarter of 2009.
February 24, 2010 | Freddie Mac Press Release
Freddie Mac reports a net loss of $6.5 billion in the fourth quarter of 2009 and a full-year 2009 net loss of $21.6 billion, compared with a $50.1 billion net loss in 2008.
February 26, 2010 | Fannie Mae Press Release
Fannie Mae reports a net loss of $15.2 billion in the fourth quarter of 2009 and a full-year 2009 loss of $72.0 billion. The fourth quarter loss resulted in a net worth deficit of $15.3 billion as of December 31, 2009, and as a result, the Acting Director of the Federal Housing Finance Agency submitted a request for $15.3 billion from the U.S. Treasury on the company's behalf.
March 2010
March 31, 2010 | Federal Reserve Bank of New York Press Release
The Federal Reserve Bank of New York releases additional information on the three Maiden Lane limited liability companies that were formed to facilitate the merger between JPMorgan Chase and Bear Stearns (Maiden Lane I) and to facilitate the government's financial support of American International Group (Maiden Lane II and III).
May 2010
May 5, 2010 | Freddie Mac Press Release
Freddie Mac reports a net loss of $6.7 billion in the first quarter of 2010, compared with a $6.5 billion net loss in the fourth quarter of 2009. The fourth quarter loss resulted in a net worth deficit of $10.5 billion as of March 31, 2010. In response, the Federal Housing Finance Agency, which is Freddie Mac's Conservator, will submit a request for $10.6 billion from the U.S. Treasury on the company's behalf.
May 9, 2010 | Federal Reserve Press Release | European Central Bank Press Release | European Union Press Release
The Federal Reserve re-establishes temporary reciprocal currency arrangements (swap lines) with the Bank of Canada, the Bank of England, the European Central Bank and the Swiss National Bank in response to the re-emergence of strains in U.S. dollar short-term funding markets in Europe.
Separately, the Economy and Finance Council of the European Union announce a loan package to cover the needs of members with solvency problems and to defend the euro, and the European Central Bank announces a series of measures to contribute to the stabilization of the Eurozone.
Separately, the Economy and Finance Council of the European Union announce a loan package to cover the needs of members with solvency problems and to defend the euro, and the European Central Bank announces a series of measures to contribute to the stabilization of the Eurozone.
May 9, 2010 | International Monetary Fund Press Release
The Executive Board of the International Monetary Fund (IMF) approves a three-year SDR 26.4 billion (€30 billion) Stand-By Arrangement for Greece. The IMF is making immediately available $4.8 billion (about €5.5 billion) to Greece as part of joint financing with the European Union, for a combined €20.0 billion in immediate financial support.
May 10, 2010 | Council of the European Union Press Release
The Council of the European Union and the Member States decides on a comprehensive package of measures to preserve financial stability in Europe, including a European Financial Stabilisation mechanism with a total volume of up to EUR 500 billion, with terms similar to those offered by the IMF.
May 10, 2010 | Fannie Mae Press Release
Fannie Mae reports a net loss of $11.5 billion in the first quarter of 2010, compared with a net loss of $15.2 billion in the fourth quarter of 2009. The Federal Housing Finance Agency, Fannie Mae's conservator, has requested the Treasury to provide Fannie Mae with $8.4 billion on or prior to June 30, 2010.
May 11, 2010 | Federal Reserve Press Release
The Federal Reserve publicly releases the text of three agreements with foreign central banks to reestablish temporary dollar swap facilities and announces that it would disclose information weekly on use of the swap lines by each of the counterparty central banks.
May 26, 2010 | U.S. Treasury Department Press Release
The U.S. Treasury Department announces the sale of 1.5 billion shares of its holdings of Citigroup common stock. The Treasury Department had received 7.7 billion shares of Citigroup common stock in 2009 in exchange for $25 billion in preferred stock it received in connection with Citigroup's participation in the Capital Purchase Program.
May 28, 2010 | Congressional Budget Office Press Release
The Congressional Budget Office releases a study describing the various actions by the Federal Reserve to stabilize financial markets since 2007 and how those actions are likely to affect the federal budget in coming years. The report also presents estimates of the risk-adjusted (or fair value) subsidies that the Federal Reserve provided to financial institutions through its emergency programs.
June 2010
June 11, 2010 | U.S. Treasury Department Press Release
In its May Troubled Asset Relief Program (TARP) report to Congress, the U.S. Department of the Treasury announces that TARP repayments to taxpayers have, for the first time, surpassed the total amount of TARP funds outstanding. Treasury's report shows that, through the end of the May, TARP repayments had reached a total of $194 billion, which exceeded the total amount of TARP funds outstanding ($190 billion) by $4 billion.
June 16, 2010 | Freddie Mac Press Release
Freddie Mac announces that the company has notified the New York Stock Exchange (NYSE) of its intent to delist its common stock and the 20 listed classes of its preferred stock. This notice is made pursuant to a directive by the Federal Housing Finance Agency, requiring Freddie Mac to delist its common and preferred securities from the NYSE. According to a press release by FHFA, the Acting Director of FHFA issued similar directives to both Freddie Mac and Fannie Mae.
July 2010
July 21, 2010 | Dodd-Frank Wall Street Reform and Consumer Protection Act
President Barack Obama signs the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203 into law. The law is aimed at promoting financial stability in the United States through a variety of mechanisms.
July 23, 2010 | European Union Publication
The Committee of European Banking Supervisors (CEBS), publishes the results of the EU-wide stress-testing exercise, in close cooperation with the ECB.
August 2010
August 10, 2010 | Federal Reserve Board Press Release
The FOMC agrees to keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities. The Committee will continue to roll over the Federal Reserve’s holdings of Treasury securities as they mature.
September 2010
September 10, 2010 | International Monetary Fund Press Release
The Executive Board of the International Monetary Fund (IMF) completes the first review of Greece’s performance since being granted a 3-year, SDR 26.4 billion (about €30 billion) stand-by arrangement (SBA). Greece receives the immediate disbursement of an amount equivalent to SDR 2.16 billion (about €2.57 billion), which brings total disbursements to SDR 6.97 billion (about €8.28 billion).
September 30, 2010 | U.S. Treasury Department Press Release
The U.S. Department of the Treasury announces that it priced a secondary offering of all Citigroup trust preferred securities received pursuant to the Asset Guarantee Program (AGP). The aggregate gross proceeds from the offering, all of which represent a net gain or profit to the taxpayer under the AGP, will be $2.246 billion.
October 2010
October 1, 2010 | Freddie Mac Press Release
Freddie Mac releases a statement that there may be affidavits that were improperly executed in connection with foreclosures. The alleged practices in the reports are not in compliance with Freddie Mac's guidelines and directives to its servicers.
October 1, 2010 | Financial Stability Oversight Council Initiative
The Financial Stability Oversight Council holds its inaugural meeting. The council consists of nine members and has the main purpose of identifying risk in the United States financial system.
October 5, 2010 | U.S. Treasury Department Press Release
The U.S. Department of the Treasury today announces the release of a "Two-year Retrospective" report on TARP. The report provides a comprehensive overview of the steps that Treasury took under TARP to contain a growing financial panic that gripped our country in late 2008 and early 2009.
November 2010
November 3, 2010 | Federal Reserve Board Press Release
The FOMC announces its decision to expand its holdings of securities in order to promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate. The Committee will maintain its existing policy of reinvesting principal payments from its securities holdings and to purchase a further $600 billion of longer-term Treasury securities by the end of the second quarter of 2011, a pace of about $75 billion per month.
November 22, 2010 | Statement by the Eurogroup and ECOFIN Ministers
EU/IMF authorities unanimously agree to a three year joint financial assistance programme for Ireland in response to the Irish authorities' request on November 22, 2010. Ministers concur with the Commission and the ECB that a loan to Ireland is warranted to safeguard financial stability in the euro area and the EU as a whole.
November 23, 2010 | International Monetary Fund Press Release
Staff teams from the European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) visit Athens from November 14-23 and conduct the second review of the government’s economic program. The assessment is positive. Ireland meets the end-September quantitative criteria. Significant progress is made, particularly in reducing the fiscal deficit.
November 23, 2010 | U.S. Treasury Department Press Release
The U.S. Department of the Treasury announces that with the delivery of $11.7 billion in proceeds from the initial public offering (IPO) of General Motors (GM), the total amount of Troubled Asset Relief Program (TARP) funds returned to taxpayers now exceeds $250 billion.
November 24, 2010 | Irish Government Press Release
Ireland's government outlines €15 billion ($20.55 billion) in spending cuts and tax hikes over four years intended to reduce the budget deficit to 9.1% of gross domestic product in 2011.
December 2010
December 1, 2010 | Federal Reserve Press Release
The Federal Reserve Board releases detailed information about more than 21,000 individual credit and other transactions conducted to stabilize markets during the recent financial crisis, to restore the flow of credit to households and firms, and to support economic recovery and job creation in the aftermath of the crisis.
December 7, 2010 | U.S. Treasury Department Press Release
The U.S. Treasury Department sells its remaining shares of Citigroup common stock, which it had acquired in July 2009 in exchange for preferred stock received in connection with Citigroup's participation in the Capital Purchase Program.
January 2011
January 14, 2011 | Federal Reserve Bank of New York Press Release
The Federal Reserve Bank of New York announces the termination of its assistance to American International Group, Inc. (AIG) and the full repayment of its loans to AIG as a result of the closing of the recapitalization that was announced on September 30, 2010. AIG will no longer have any outstanding obligations to the New York Fed.
January 27, 2011 | Financial Crisis Inquiry Commission Report
The Financial Crisis Inquiry Commission releases its final report on the causes of the financial and economic crisis in the United States.
February 2011
February 10, 2011 | Financial Crisis Inquiry Commission Release
The Financial Crisis Inquiry Commission releases audio files and transcripts of interviews, and other documents and data compiled by the Commission in the course of its inquiry into the causes of the financial crisis.
February 11, 2011 | U.S. Treasury Department Press Release
The U.S. Treasury Department and the Department of Housing and Urban Development release their report to Congress on Reforming America's Housing Finance Market.
March 2011
March 18, 2011 | Federal Reserve Press Release
The Federal Reserve releases the Comprehensive Capital Analysis and Review (CCAR) of the 19 largest U.S. bank holding companies. Sometimes referred to as "stress tests," the CCAR is designed to measure capital adequacy plans of the largest financial institutions under different economic scenarios. As a result of the CCAR, some firms are expected to increase or restart dividend payments, buy back shares, or repay government capital.
March 21, 2011 | U.S. Treasury Department Press Release
The U.S. Department of the Treasury announces that it intends to sell its remaining portfolio, $142 billion, of agency-guaranteed mortgage-backed securities (MBS). These MBS were originally purchased under the authority provided by the Housing and Economic Recovery Act of 2008. The Treasury said that it will sell up to $10 billion of MBS per month, subject to market conditions.
March 31, 2011
The Board of Governors releases information regarding borrowers at the discount window and emergency lending facilities under section 13(3) of the Federal Reserve Act. The material spans the period from August 8, 2007 to March 1, 2010. This release is the result of court proceedings brought by media companies under the Freedom of Information Act (Fox News Network, LLC v. Board of Governors, 601 F.3d 158 (2d Cir. 2010) and Bloomberg, L.P. v. Board of Governors, 601 F.3d 143 (2d Cir. 2010)).The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires the Federal Reserve to release information concerning the borrowers and counterparties participating in emergency credit facilities, discount window lending programs and open market operations authorized or conducted by the Board of Governors or a Federal Reserve Bank. The disclosure must be made on an on-going basis with a time lag of at most two years depending on the specific type of transaction.
April 2011
April 13, 2011
The U.S. Senate Permanent Subcommittee on Investigations releases its final report on its inquiry into key causes of the financial crisis.
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