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...
