–Discount Window, Open Mkt Operation Transactions Posted W/2-Yr Lag

WASHINGTON (MNI) – The following is the Federal Reserve’s
announcement of one of its largest exercises in transparency, the
first posting of crisis account transaction details, including names of
counterparties, on its Web site:
www.federalreserve.gov/newsevents/reform_transaction.htm

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 riskmanagement 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.

The Federal Reserve is committed to transparency and has previously
provided extensive aggregate information on its facilities in weekly and
monthly reports. As provided by the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010, transaction-level details now are
posted from December 1, 2007, to July 21, 2010, in the following
programs:

–Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity
Facility (AMLF)

–Term Asset-Backed Securities Loan Facility (TALF)

–Primary Dealer Credit Facility (PDCF)

–Commercial Paper Funding Facility (CPFF)

–Term Securities Lending Facility (TSLF)

–TSLF Options Program (TOP)

–Term Auction Facility (TAF)

–Agency MBS purchases

–Dollar liquidity swap lines with foreign central banks

–Assistance to Bear Stearns, including Maiden Lane

–Assistance to American International Group, including Maiden Lane
II and III

Additionally, discount window and open market operation
transactions after July 21, 2010, will be posted with a two-year lag.

The data made available Wednesday can be downloaded in multiple
formats, including Excel, at
www.federalreserve.gov/newsevents/reform_transaction.htm. The Excel
files allow users to search, sort, and filter the data for each program
in multiple categories. The site also provides explanations of each
program as well as definitions for the data elements.

In the case of broad-based facilities, details provided include the
name of the borrower, the amount borrowed, the date the credit was
extended, the interest rate charged, information about collateral, and
other relevant credit terms. Similar information is provided for the
draws of foreign central banks on their dollar liquidity swap lines with
the Federal Reserve. For agency MBS transactions, details include the
name of the counterparty, the security purchased or sold, and the date,
amount, and price of the transaction.

** Market News International Washington Bureau: 202-371-2121 **

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