Federal Reserve Bank of New York January Forms of

Federal Reserve Bank of New York January 2009 Forms of Federal Reserve Lending to Financial Institutions Regular OMOs Single-Tranche OMO Program (announced March 7, 2008) Discount Window1 Term Discount Window Program (announced August 17, 2007) Term Auction Facility Primary Dealer Credit Facility Transitional Credit Extensions (announced September 21, 2008) U.S. and London brokerdealer subsidiaries of Goldman Sachs, Morgan Stanley, Merrill Lynch Funds Full range of Discount Window collateral and tri-party repo system collateral10 Yes Reciprocal Currency Arrangements (first announced December 12, 2007)3 Select central banks to lend on to banks in their jurisdiction3 U.S. Dollars Central banks pledge foreign currency and lend against eligible collateral in their jurisdiction (announced (announced December 12, 2007) March 16, 2008)2 Securities Lending Term Securities Lending Facility (announced March 11, 2008)2 Money Market Term Asset-Backed Term Securities ABCP Money Commercial Paper Investing Funding Securities Loan Lending Facility Market Fund Funding Facility Facility Facility5 Options Program4 Liquidity Facility (announced (announced (announced (announced (announced October 7, 2008) October 21, 2008) November 25, 2008) September 19, 2008)2 July 30, 2008) Primary dealers Despository institutions, bank holding companies, U.S. branches and agencies of foreign banks Who can participate? What are they borrowing? What collateral can be pledged? Is there a reserve impact? What is the term of loan? Is prepayment allowed if term is greater than overnight? Which Reserve Banks conduct operations? How frequently is the program accessed? Where are statistics reported publicly? Primary dealers Primary dealers Depository institutions Funds Full range of Discount Window collateral Yes Typically overnight, but up to several weeks14 Yes Primary credit-eligible Primary credit-eligible Primary dealers depository institutions depository institutions Funds Full range of Discount Window collateral Yes Up to 90 days15 Funds Full range of Discount Window collateral Yes 28 days or 84 days13,16 Funds Full range of tri-party repo system collateral9,10 Yes Overnight Primary dealers Primary dealers Eligible CP issuers6 Eligible Money Market All U.S. persons that own eligible collateral Mutual Funds7 Funds and subordinated note U.S. dollar-denominated certificates of deposit, bank notes and commercial paper issued by highly rated financial institutions Funds U.S. Treasuries, agencies, agency MBS8 Funds U.S. Treasuries, agencies, agency MBS, but typically agency MBS Yes 28 days13 U.S. Treasuries U.S. Treasuries Schedule 1: U.S. Treasuries, agencies, agency MBS Schedule 2: Schedule 1 plus all invesment grade debt securities9 U.S. Treasuries Funds Funds Newly issued 3-month unsecured and assetbacked CP from eligible U.S. issuers Funds U.S. Treasuries Schedule 2 TSLF collateral No (loans are bond-for-bond) Typically 2 weeks or less17 First-tier ABCP Recently originated U.S. dollar-denominated AAA ABS11 Yes At least one year Yes Typically, term is overnight–14 days12 Yes Overnight to 3 months No (loans are bond-for-bond) Overnight No (loans are bond-for-bond) 28 days13 Yes ABCP maturity date (270-day maximum) Yes 3 months Yes N/A Overnight No No Yes No N/A N/A Yes N/A No No No N/A N/A Yes FRBNY FRBNY All As requested (standing facility) H.4.1 - Factors Affecting Reserve Balances20 All As requested (standing facility) H.4.1 - Factors Affecting Reserve Balances20 All Every other week, or as necessary16 TAF Activity19 FRBNY As requested (standing facility) H.4.1 - Factors Affecting Reserve Balances20 FRBNY As requested (standing facility) H.4.1 - Factors Affecting Reserve Balances20 FRBNY Typically on schedule with FRBNY TAF auctions or as requested by central banks FRBNY FRBNY Schedule 1: Every other week Schedule 2: Weekly FRBNY FRB Boston As requested (standing facility) H.4.1 - Factors Affecting Reserve Balances20 FRBNY As requested (standing facility) H.4.1 - Factors Affecting Reserve Balances20 FRBNY As requested (standing facility) H.4.1 - Factors Affecting Reserve Balances20 FRBNY Typically once or more daily Temporary OMO activity19 Typically weekly Temporary OMO activity19 Daily As necessary18 Term securities lending facilty options program activity19 Monthly H.4.1 - Factors Affecting Reserve Balances20 Securities lending activity Term securities lending facility activity19 TALF activity19 1 2 Discount Window includes primary, secondary and seasonal credit programs. The PDCF, TSLF and AMLF will remain in operation through April 30, 2009 as announced on December 2, 2008. 3 ECB and SNB announced December 12, 2007; BOC, BOE, and BOJ announced September 18, 2008; RBA, Sverige Riksbank, DNB, and Norges Bank announced September 24, 2008; Reserve Bank of New Zealand announced October 28, 2008; Banco Central do Brazil, Banco de Mexico, Bank of Korea, and Monetary Authority of Singapore announced October 29, 2008 4 TOP auctions are sales of options granting the right to enter into TSLF borrowing. 5 The TALF is expected to go live around February 2009. The Federal Reserve reserves the right to review and make adjustments to these terms and conditions – including size of program, pricing, loan maturity, and asset and borrower eligibility requirements – consistent with the policy objectives of the TALF. 6 Through the CPFF the FRBNY provides financing to an SPV that purchases eligible three-month unsecured and asset-backed commercial paper from eligible issuers. 7 Through the MMIFF the FRBNY will provide senior secured funding to a series of private sector SPVs to finance the purchase of certain money market instruments from eligible investors. 8 Reverse repos are collateralized with U.S. Treasuries. 9 PDCF and TSLF collateral expanded on September 14, 2008. 10 Includes non-U.S. dollar denominated securities. 11 Includes auto loans, student loans, credit card loans, or small business loans guaranteed by the U.S. SBA 12 Open market operations are authorized for terms of up to 65 business days. 28-day and 84-day terms may vary slightly to account for maturity dates that fall on Bank holidays. Primary credit loans are generally overnight. Loans may be granted for term beyond a few weeks to small banks, subject to additional administration. 15 Maximum maturity of term increased from overnight to 30 days on August 17, 2007, and to 90 days on March 16, 2008. 16 Foward selling TAF auctions announced on September 29, 2008 will be conducted in November with terms targeted to provide funding over year-end. 17 Loans are targeted to span potentially stressed financing dates, such as quarter-ends. 18 TOP auctions may be conducted on multiple dates for a single loan and may be conducted well in advance of a loan period. 19 Data only available on days when operations are conducted. 20 Data published on Thursday, as of close of business on Wednesday. 13 14