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Federal Reserve Bank of New York

January 2009

Forms of Federal Reserve Lending to Financial Institutions
Term Securities ABCP Money Money Market Term Asset-Backed
Single-Tranche Term Discount Term Auction Primary Dealer Transitional Credit Reciprocal Currency Term Securities Commercial Paper
Discount Securities Lending Facility Market Fund Investing Funding Securities Loan
OMO Program Window Program Facility Credit Facility Extensions Arrangements Lending Facility Funding Facility
Regular OMOs Options Program4 Liquidity Facility Facility Facility5
(announced Window1 (announced (announced (announced (announced (first announced Lending (announced (announced
(announced (announced (announced (announced
March 7, 2008) August 17, 2007) December 12, 2007) March 16, 2008)2 September 21, 2008) December 12, 2007)3 March 11, 2008)2 October 7, 2008) October 21, 2008) November 25, 2008)
July 30, 2008) September 19, 2008)2
U.S. and London broker-
Select central banks Despository institutions,
Who can Depository Primary credit-eligible Primary credit-eligible dealer subsidiaries of bank holding companies, Eligible Money Market All U.S. persons that
Primary dealers Primary dealers Primary dealers to lend on to banks Primary dealers Primary dealers Primary dealers Eligible CP issuers6
participate? institutions depository institutions depository institutions Goldman Sachs, Morgan U.S. branches and agencies Mutual Funds7 own eligible collateral
in their jurisdiction3 of foreign banks
Stanley, Merrill Lynch
What are they Funds and
Funds Funds Funds Funds Funds Funds Funds U.S. Dollars U.S. Treasuries U.S. Treasuries U.S. Treasuries Funds Funds Funds
borrowing? subordinated note

U.S. Treasuries, Full range of Schedule 1: U.S. Treasuries, U.S. dollar-denominated
Central banks pledge foreign Newly issued 3-month
U.S. Treasuries, agencies, Full range of Full range of Full range of Full range of Discount Window agencies, agency MBS certificates of deposit, bank Recently originated
What collateral currency and lend against Schedule 2 unsecured and asset-
agencies, agency MBS, Discount Window Discount Window Discount Window tri-party repo collateral U.S. Treasuries First-tier ABCP backed CP from eligible
notes and commercial paper U.S. dollar-denominated
can be pledged? eligible collateral in Schedule 2: Schedule 1 plus all TSLF collateral issued by highly rated
agency MBS8 but typically collateral collateral collateral system collateral9,10 and tri-party repo their jurisdiction U.S. issuers AAA ABS11
invesment grade debt securities9 financial institutions
agency MBS system collateral10
Is there a No (loans are No (loans are No (loans are
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
reserve impact? bond-for-bond) bond-for-bond) bond-for-bond)
Typically overnight, ABCP maturity date
What is the Typically, term is Typically
28 days13 but up to Up to 90 days15 28 days or 84 days13,16 Overnight Overnight Overnight to 3 months Overnight 28 days13 (270-day maximum) 3 months N/A At least one year
term of loan? overnight–14 days12 2 weeks or less17
several weeks14
Is prepayment
allowed if term
No No Yes Yes No N/A N/A Yes N/A No No No N/A N/A Yes
is greater than
Which Reserve
How frequently Typically on schedule with FRBNY Schedule 1: Every other
Typically once As requested As requested Every other week, As requested As requested TAF auctions or as requested week As requested As requested As requested
is the program Typically weekly Daily As necessary18 Monthly
or more daily (standing facility) (standing facility) or as necessary16 (standing facility) (standing facility) by central banks
Schedule 2: Weekly (standing facility) (standing facility) (standing facility)

Where are H.4.1 - Factors H.4.1 - Factors H.4.1 - Factors H.4.1 - Factors H.4.1 - Factors Term securities H.4.1 - Factors H.4.1 - Factors H.4.1 - Factors
Temporary Temporary Term securities
statistics reported Affecting Reserve Affecting Reserve TAF Activity19 Affecting Reserve Affecting Reserve Affecting Reserve Securities lending lending facilty Affecting Reserve Affecting Reserve Affecting Reserve
OMO activity19 OMO activity19 lending facility TALF activity19
publicly? Balances20 Balances20 Balances20 Balances20 Balances20 activity options program Balances20 Balances20 Balances20

Discount Window includes primary, secondary and seasonal credit programs. 6
Through the CPFF the FRBNY provides financing to an SPV that purchases eligible three-month unsecured and 13
28-day and 84-day terms may vary slightly to account for maturity dates that fall on Bank holidays.
The PDCF, TSLF and AMLF will remain in operation through April 30, 2009 as announced on December 2, 2008. asset-backed commercial paper from eligible issuers.
Primary credit loans are generally overnight. Loans may be granted for term beyond a few weeks to small banks,
ECB and SNB announced December 12, 2007; BOC, BOE, and BOJ announced September 18, 2008; RBA, Sverige 7
Through the MMIFF the FRBNY will provide senior secured funding to a series of private sector SPVs to finance the subject to additional administration.
Riksbank, DNB, and Norges Bank announced September 24, 2008; Reserve Bank of New Zealand announced purchase of certain money market instruments from eligible investors.
Maximum maturity of term increased from overnight to 30 days on �August 17, 2007, and to 90 days on
October 28, 2008; Banco Central do Brazil, Banco de Mexico, Bank of Korea, and Monetary Authority of Singapore 8 March 16, 2008.
Reverse repos are collateralized with U.S. Treasuries.
announced October 29, 2008 9
Foward selling TAF auctions announced on �September 29, 2008 will be conducted in November with terms targeted
PDCF and TSLF collateral expanded on �September 14, 2008. to provide funding over year-end.
TOP auctions are sales of options granting the right to enter into TSLF borrowing. 10
Includes non-U.S. dollar denominated securities.
Loans are targeted to span potentially stressed financing dates, such as quarter-ends.
The TALF is expected to go live around February 2009. The Federal Reserve reserves the right to review and 11
Includes auto loans, student loans, credit card loans, or small business loans guaranteed by the U.S. SBA 18
TOP auctions may be conducted on multiple dates for a single loan and may be conducted well in advance of a
make adjustments to these terms and conditions – including size of program, pricing, loan maturity, and asset and 12
Open market operations are authorized for terms of up to 65 business days. loan period.
borrower eligibility requirements – consistent with the policy objectives of the TALF. 19
Data only available on days when operations are conducted.
Data published on Thursday, as of close of business on Wednesday.