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 | Federal Reserve Press Release | Term Sheet

The Treasury, Federal Reserve, and FDIC announce a package of guarantees, liquidity access, and capital for Bank of America. The 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 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 Treasury, 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 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 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 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 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.