The Federal Reserve Board on Wednesday posted detailed information on its public website about more than 21,000 individual credit and other transactions conducted to stabilize markets during the recent financial crisis, restore the flow of credit to American families and businesses, and support economic recovery and job creation in the aftermath of the crisis.
Many of the transactions, conducted through a variety of broad-based lending facilities, provided liquidity to financial institutions and markets through fully secured, mostly short-term loans. Purchases of agency mortgage-backed securities (MBS) supported mortgage and housing markets, lowered longer-term interest rates, and fostered economic growth. Dollar liquidity swap lines with foreign central banks helped stabilize dollar funding markets abroad, thus contributing to the restoration of stability in U.S. markets. Other transactions provided liquidity to particular institutions whose disorderly failure could have severely stressed an already fragile financial system.
As financial conditions have improved, the need for the broad-based facilities has dissipated, and most were closed earlier this year. The Federal Reserve followed sound risk-management practices in administering all of these programs, incurred no credit losses on programs that have been wound down, and expects to incur no credit losses on the few remaining programs. These facilities were open to participants that met clearly outlined eligibility criteria; participation in them reflected the severe market disruptions during the financial crisis and generally did not reflect participants' financial weakness….
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On a side note. While Bank of America and Wells Fargo were the biggest TAF recipients, AP reports that – when total government loans and aid are added up – other American banks borrowed much more. From AP:
While Bank of America and Wells Fargo were the biggest TAF recipients, AP reports that – when total government loans and aid are added up – other American banks borrowed much more:
New documents show that the most loan and other aid for U.S. institutions over time went to Citigroup ($2.2 trillion), followed by Merrill Lynch ($2.1 trillion), Morgan Stanley ($2 trillion), Bear Stearns ($960 billion), Bank of America ($887 billion), Goldman Sachs ($615 billion), JPMorgan Chase ($178 billion) and Wells Fargo ($154 billion).
Foreign banks also benefited from the Fed's aid. They included Swiss bank UBS, which borrowed more than $165 billion, Deutsche Bank ($97 billion) and the Royal Bank of Scotland ($92 billion).
The documents disclosed details of more than $3.3 trillion in loans to financial institutions, companies and foreign central banks during the crisis. The figure comes from adding up the maximum amount of aid provided for each of the Fed's credit programs.
The Fed detailed more than $2 trillion it lent through eight programs from December 2007 to July this year to ease a credit crisis. It came at a time when the financial crisis had caused credit to virtually dry up, sidelining companies and municipalities in need of short-term cash. The credit clog worsened the deepest recession since the Great Depression.
On a side note. While Bank of America and Wells Fargo were the biggest TAF recipients, AP reports that – when total government loans and aid are added up – other American banks borrowed much more. From AP:
While Bank of America and Wells Fargo were the biggest TAF recipients, AP reports that – when total government loans and aid are added up – other American banks borrowed much more:
New documents show that the most loan and other aid for U.S. institutions over time went to Citigroup ($2.2 trillion), followed by Merrill Lynch ($2.1 trillion), Morgan Stanley ($2 trillion), Bear Stearns ($960 billion), Bank of America ($887 billion), Goldman Sachs ($615 billion), JPMorgan Chase ($178 billion) and Wells Fargo ($154 billion).
Foreign banks also benefited from the Fed's aid. They included Swiss bank UBS, which borrowed more than $165 billion, Deutsche Bank ($97 billion) and the Royal Bank of Scotland ($92 billion).
The documents disclosed details of more than $3.3 trillion in loans to financial institutions, companies and foreign central banks during the crisis. The figure comes from adding up the maximum amount of aid provided for each of the Fed's credit programs.
The Fed detailed more than $2 trillion it lent through eight programs from December 2007 to July this year to ease a credit crisis. It came at a time when the financial crisis had caused credit to virtually dry up, sidelining companies and municipalities in need of short-term cash. The credit clog worsened the deepest recession since the Great Depression.
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