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The Fed's New Tools

From Barry Ritholtz:

The Big Picture: Now, you can track all of these programs via the Federal Reserve Bank of New York. They published a handy guide counting all the ways you can engage in Moral Hazard borrow from the nation's lender of last resort.

These Five were created since August:

  • Term Securities Lending Facility (TSLF), announced March 11, allowing securities dealers to get Treasurys at auction for 28 days
  • Primary Dealer Credit Facility (PDCF), announced March 16, for securities firms to receive overnight loans
  • Term Auction Facility (TAF), announced December 12, for banks to get funds at auction without the discount window stigma
  • Single-Tranche OMO (Open Market Operation) program, announced March 7, allowing securities dealers to get 28-day funds
  • Term Discount Window Program (TDWP?), announced August 17, extending the length of discount-window loans to 90 days...

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