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Federal Reserve actions include changes to loan program, currency swap arrangements.

Recent Federal Reserve actions include the publication of information regarding an assessment of banks' capital positions, a change to an existing loan facility's interest rates, the creation of currency swap arrangements with other central banks, and the publication of the Reserve Banks' financial statements.


* Federal banking supervisory agencies recently published a description of the agencies' processes and methodologies used to assess banks' capitalization. This white paper is intended to assist analysts and other interested parties in understanding the results of the Supervisory Capital Assessment Program, which is expected to be released in early May. All U.S. bank holding companies with year-end 2008 assets over $100 billion were required to participate in the assessment, which began February 25.

* The Federal Reserve System has published the annual financial statements for the combined Federal Reserve Banks, the 12 individual Federal Reserve Banks, the limited liability companies (LLCs) that were created in 2008 to respond to strains in financial markets, and the Board of Governors for the years ended Dec. 31, 2008 and 2007.

* The Federal Reserve Board recently announced two new interest rates applicable to loans extended under the Term Asset-Backed Securities Loan Facility (TALF). The rates apply to certain loans secured by asset-backed securities with weighted average lives to maturity of less than two years. The new rates will be based on one- and two-year London interbank offered (LIBOR) swap rates.

* The Federal Reserve's policymaking arm, the Federal Open Market Committee, has authorized new temporary reciprocal currency arrangements, sometimes called foreign currency liquidity swap lines, with the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank. If drawn upon, these arrangements would support operations by the Federal Reserve to provide liquidity in sterling in amounts of up to 30 billion pounds, 80 billion euros, 10 trillion yen, and 40 billion Swiss francs. These foreign currency liquidity swap lines have been authorized through Oct. 30, 2009.
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Publication:Financial Update
Date:Apr 1, 2009
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