|
|
The summary provides an overview of measures undertaken by the US Government. “These actions are not what we ever wanted to do”, Treasury Secretary Paulson said, announcing that the Treasury will purchase equity stakes in banks and thrifts.
“We will not stand down until we have achieved our goals of repairing and reforming our financial system”, Federal Reserve Chairman Ben Bernanke said. “clearly the time had come for a more comprehensive and broad-based solution.”
Purchasing 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
Guaranteeing Certain Obligations of Financial Institutions
FDIC will temporarily guarantee the senior debt of all FDIC-insured institutions and their holding companies, as well as deposits in non-interest bearing deposit transaction accounts. Regulators will implement an enhanced supervisory framework to assure appropriate use of this new guarantee. The ability to issue guaranteed debt under the program would expire on
Purchasing Commercial Paper
The Federal Reserve has announced further details of its Commercial Paper Funding Facility (CPFF) program, which provides a broad backstop for the commercial paper market. Beginning October 27, the CPFF will be able to purchase commercial paper of 3 month maturity from high-quality issuers.
Joint statement by Treasury, Federal Reserve and FDIC