Knowledge

Commercial Paper Funding Facility

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available by the NY Fed. The commercial paper remained in the custody of the SPV till the CP matured. On maturity, the proceeds from commercial paper and other assets were used to repay the loan that was originally taken from the NY Fed. All purchases of the Commercial Papers by the SPV was done through the New York Fed's primary dealers. This program lent out a total $ 738 billion before it was closed. 45 out 81 of the companies participating in this program were foreign firms. Research shows that
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Only "Active" U.S. issuers of commercial paper (including those with a foreign parent), were eligible to sell commercial paper to the SPV. Active was defined as having at least three consecutive months of commercial paper outstanding during the period starting January 1, 2008 through August 31, 2008.
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and the global credit freeze that ensued. The CPFF method of short-term funding provided liquidity to U.S. issuers of commercial paper through a special purpose vehicle, aka SPV, which bought unsecured and asset-backed commercial paper for 3-month period from eligible issuers with funds made
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The commercial paper had to be rated at least A-1/P-1/F1 by a major nationally recognized statistical rating organization (NRSRO) and, if rated by multiple major NRSROs, must have been rated at least A-1/P-1/F1 by two or more major NRSROs.
93:(TARP) recipients were twice as likely to participate in the program than other commercial paper issuers who did not take advantage of the TARP bailout. The Fed incurred no losses from the CPFF. 120:
As part of the application process to be eligible for this program issuers had to pay a 10 basis point (0.1%) fee based on their maximum CP balance during the active period mentioned above.
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from eligible issuers via eligible primary dealers. The facility expired February 1, 2010. The final CP purchased matured on April 26, 2010. All CP notes purchased were repaid in full.
762: 1608: 1474: 786: 719: 679: 1425: 266: 780: 1585: 686: 292:"Federal Reserve Board announces establishment of a Commercial Paper Funding Facility (CPFF) to support the flow of credit to households and businesses" 1464: 731: 613: 352: 1163: 510: 1555: 1420: 1819: 1170: 1479: 1334: 737: 1525: 1286: 769: 1570: 1494: 774: 221:
Wilson, Linus; Wu, Yan Wendy (22 August 2011). "Does Receiving TARP Funds Make it Easier to Roll Your Commercial Paper Onto the Fed?".
143: 64:(CP) from eligible issuers. This resulted in greater availability of credit for firms doing business. It worked under the aegis of the 1750: 1580: 1208: 151: 133: 31: 1410: 1263: 667: 159: 1504: 1301: 1291: 450: 1760: 1489: 1459: 1380: 1111: 743: 601: 505: 101: 97: 1520: 1375: 1241: 1158: 1021: 345: 1091: 1081: 445: 1665: 1550: 924: 655: 382: 1809: 1560: 1545: 1071: 1031: 958: 948: 673: 377: 1788: 1415: 1246: 1133: 1041: 1011: 954: 707: 65: 1814: 1743: 1236: 1061: 1051: 338: 51: 27: 291: 1783: 1660: 1395: 1390: 1101: 1001: 755: 725: 1565: 1499: 1400: 1201: 392: 90: 69: 30:
to improve liquidity in the short-term funding markets. It was reauthorized in March 2020 in reaction to the
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authorized $ 10 billion to backstop any losses incurred by the Fed using the Treasury's
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The CPFF began operations on October 27, 2008 following the collapse of
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where the NY Fed finances the purchase of highly rated unsecured and
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List of banks acquired or bankrupted during the Great Recession
241:"Commercial Paper Funding Facility: Frequently Asked Questions" 196:"Regulatory Reform - Commercial Paper Funding Facility (CPFF)" 1444: 60:(SPV) that purchased three-month unsecured and asset-backed 158:, the Fed announced that they would utilize the CPFF. The 1475:
Dodd–Frank Wall Street Reform and Consumer Protection Act
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National fiscal policy response to the Great Recession
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The CPFF was created on October 27, 2008 and funded a
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Public–Private Investment Program for Legacy Assets
96:This program was created at the same time that the 1705:(Europe, Middle East and North Africa, Asia; 2009) 22:(CPFF) was a system created by the United States 16:US government program during the financial crisis 1801: 1513: 296:Board of Governors of the Federal Reserve System 123: 1556:American Recovery and Reinvestment Act of 2009 1421:Office of Federal Housing Enterprise Oversight 45: 1202: 1171:Personal consumption expenditures price index 346: 321:Commercial Paper Funding Facility (2008–2010) 104:to increase liquidity in inter-bank lending. 1480:Emergency Economic Stabilization Act of 2008 770:2009 Supervisory Capital Assessment Program 687:Federal Reserve v. Investment Co. Institute 1617: 1571:Fraud Enforcement and Recovery Act of 2009 1495:Term Asset-Backed Securities Loan Facility 1209: 1195: 775:Term Asset-Backed Securities Loan Facility 360: 353: 339: 1751:Effects of the Great Recession on museums 1581:Housing and Economic Recovery Act of 2008 1465:China–Japan–South Korea trilateral summit 326:Commercial Paper Funding Facility (2020–) 134:Financial impact of the COVID-19 pandemic 1445:Government policy and spending responses 1411:Government National Mortgage Association 220: 1505:2008 United Kingdom bank rescue package 1802: 451:Monetary Policy Report to the Congress 1490:Temporary Liquidity Guarantee Program 1460:Banking (Special Provisions) Act 2008 1443: 1381:Federal Deposit Insurance Corporation 1190: 744:Unfair or Deceptive Acts or Practices 334: 102:Temporary Liquidity Guarantee Program 98:Federal Deposit Insurance Corporation 1820:Great Recession in the United States 1376:Consumer Financial Protection Bureau 1159:Monetary policy of the United States 738:Emergency Economic Stabilization Act 695:Northeast Bancorp v. Federal Reserve 668:Humphrey–Hawkins Full Employment Act 264: 1666:Collateralized mortgage obligations 1216: 446:Federal Reserve Statistical Release 13: 732:Subprime mortgage crisis responses 14: 1831: 1761:2007–2008 world food price crisis 1561:Chinese economic stimulus program 1546:2008 European Union stimulus plan 1470:Commercial Paper Funding Facility 797:Commercial Paper Funding Facility 750:Commercial Paper Funding Facility 314: 144:Russia–Saudi Arabia oil price war 20:Commercial Paper Funding Facility 1789:List of countries by public debt 1416:National Asset Management Agency 1134:Criticism of the Federal Reserve 708:Expedited Funds Availability Act 424: 245:Federal Reserve Bank of New York 66:Federal Reserve Bank of New York 1744:2008 Central Asia energy crisis 1661:Collateralized debt obligations 602:U.S. Treasury Department Accord 265:Long, Heather (17 March 2020). 1551:2008–2009 Keynesian resurgence 1396:Federal Housing Finance Agency 1391:Federal Housing Administration 804:Corner Post v. Federal Reserve 756:Primary Dealer Credit Facility 284: 258: 233: 214: 188: 138:On 17 March 2020, following a 107: 75: 1: 1566:Economic Stimulus Act of 2008 1500:Troubled Asset Relief Program 1426:Office of Financial Stability 1401:Federal Housing Finance Board 1335:SociĂ©tĂ© GĂ©nĂ©rale trading loss 393:Federal Open Market Committee 181: 91:Troubled Asset Relief Program 70:asset-backed commercial paper 1485:Irish emergency budget, 2009 763:Bloomberg v. Federal Reserve 662:Electronic Fund Transfer Act 644:Home Mortgage Disclosure Act 638:Equal Credit Opportunity Act 526:National Monetary Commission 124:Second iteration (2020–2021) 7: 169: 164:Exchange Stabilization Fund 52:Financial crisis of 2007–08 46:First iteration (2008–2010) 28:financial crisis of 2007–08 10: 1836: 1784:2007–2008 financial crisis 1676:Mortgage-backed securities 1287:Automotive industry crisis 959:Vice Chair for Supervision 656:Federal Reserve Reform Act 650:Community Reinvestment Act 127: 84:and government bailout of 49: 1774: 1731: 1689: 1681:Secondary mortgage market 1646: 1602:rescues, and acquisitions 1600:Government interventions, 1599: 1591:Zero interest-rate policy 1538: 1450: 1439: 1368: 1315: 1302:Housing market correction 1279: 1224: 1121: 988: 923: 814: 674:International Banking Act 504: 459: 433: 422: 416:Federal Reserve Bank Note 401: 368: 140:global stock market crash 1810:2008 in economic history 1699:(United States; c. 2009) 1431:UK Financial Investments 1316:Banking losses and fraud 1307:Subprime mortgage crisis 1292:California budget crisis 608:Bank Holding Company Act 160:U.S. Treasury Department 1717:(worldwide; 2011–2012) 1656:Auction rate securities 1386:Federal Home Loan Banks 130:2020 stock market crash 58:special purpose vehicle 40:2020 stock market crash 1815:Federal Reserve System 1406:Federal Reserve System 1280:United States-specific 726:Gramm–Leach–Bliley Act 597:Employment Act of 1946 362:Federal Reserve System 176:Federal Reserve System 1756:Decline of newspapers 1703:2009 May Day protests 1649:and financial markets 1539:Stimulus and recovery 1154:Lender of last resort 830:William P. G. Harding 632:Smithsonian Agreement 562:Emergency Banking Act 388:Federal Reserve Banks 148:corporate debt bubble 24:Federal Reserve Board 1779:European debt crisis 1671:Credit default swaps 1647:Securities involved 1453:stability and reform 836:Daniel R. Crissinger 720:FDIC Improvement Act 620:Truth in Lending Act 591:Bretton Woods system 520:Aldrich–Vreeland Act 411:Federal Reserve Note 146:, and in light of a 1739:2000s energy crisis 1451:Banking and finance 1369:Government entities 586:Banking Act of 1935 532:Federal Reserve Act 154:resulting from the 1721:Occupy Wall Street 1697:Tea Party protests 1355:Scott W. Rothstein 989:Current presidents 970:Christopher Waller 860:Marriner S. Eccles 574:Glass–Steagall Act 484:Federal funds rate 1797: 1796: 1766:Retail apocalypse 1711:(MENA; 2010–2012) 1642: 1641: 1638: 1637: 1534: 1533: 1514:Bank stress tests 1184: 1183: 1028:Loretta J. Mester 1018:Patrick T. Harker 884:G. William Miller 872:William M. Martin 824:Charles S. Hamlin 156:COVID-19 pandemic 152:financial turmoil 36:COVID-19 pandemic 1827: 1690:Social responses 1615: 1614: 1511: 1510: 1441: 1440: 1211: 1204: 1197: 1188: 1187: 945:Philip Jefferson 866:Thomas B. McCabe 791:Durbin amendment 580:Gold Reserve Act 428: 427: 355: 348: 341: 332: 331: 308: 307: 305: 303: 288: 282: 281: 279: 277: 262: 256: 255: 253: 251: 237: 231: 230: 218: 212: 211: 209: 207: 192: 100:implemented the 62:commercial paper 38:, including the 32:financial impact 1835: 1834: 1830: 1829: 1828: 1826: 1825: 1824: 1800: 1799: 1798: 1793: 1770: 1727: 1715:Occupy movement 1685: 1648: 1634: 1613: 1601: 1595: 1530: 1509: 1452: 1446: 1435: 1364: 1311: 1275: 1220: 1218:Great Recession 1215: 1185: 1180: 1117: 1068:Alberto Musalem 1058:Austan Goolsbee 990: 984: 965:Michelle Bowman 926: 919: 878:Arthur F. Burns 854:Eugene R. Black 810: 508: 500: 467:Discount window 455: 429: 425: 420: 397: 364: 359: 317: 312: 311: 301: 299: 298:. 17 March 2020 290: 289: 285: 275: 273: 271:Washington Post 263: 259: 249: 247: 239: 238: 234: 219: 215: 205: 203: 202:. 18 March 2020 200:Federal Reserve 194: 193: 189: 184: 172: 136: 126: 110: 82:Lehman Brothers 78: 54: 48: 17: 12: 11: 5: 1833: 1823: 1822: 1817: 1812: 1795: 1794: 1792: 1791: 1786: 1781: 1775: 1772: 1771: 1769: 1768: 1763: 1758: 1753: 1748: 1747: 1746: 1735: 1733: 1732:Related topics 1729: 1728: 1726: 1725: 1724: 1723: 1712: 1706: 1700: 1693: 1691: 1687: 1686: 1684: 1683: 1678: 1673: 1668: 1663: 1658: 1652: 1650: 1644: 1643: 1640: 1639: 1636: 1635: 1633: 1632: 1630:General Motors 1627: 1621: 1619: 1612: 1611: 1605: 1603: 1597: 1596: 1594: 1593: 1588: 1583: 1578: 1576:Green New Deal 1573: 1568: 1563: 1558: 1553: 1548: 1542: 1540: 1536: 1535: 1532: 1531: 1529: 1528: 1523: 1517: 1515: 1508: 1507: 1502: 1497: 1492: 1487: 1482: 1477: 1472: 1467: 1462: 1456: 1454: 1448: 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671: 665: 659: 653: 647: 641: 635: 629: 623: 617: 616:(1961–present) 611: 605: 599: 594: 588: 583: 577: 571: 565: 559: 553: 547: 541: 535: 529: 523: 516: 514: 502: 501: 499: 498: 496:Primary dealer 493: 492: 491: 489:Overnight rate 481: 476: 475: 474: 463: 461: 457: 456: 454: 453: 448: 443: 437: 435: 431: 430: 423: 421: 419: 418: 413: 407: 405: 399: 398: 396: 395: 390: 385: 380: 375: 369: 366: 365: 358: 357: 350: 343: 335: 329: 328: 323: 316: 315:External links 313: 310: 309: 283: 257: 232: 213: 186: 185: 183: 180: 179: 178: 171: 168: 125: 122: 109: 106: 77: 74: 47: 44: 15: 9: 6: 4: 3: 2: 1832: 1821: 1818: 1816: 1813: 1811: 1808: 1807: 1805: 1790: 1787: 1785: 1782: 1780: 1777: 1776: 1773: 1767: 1764: 1762: 1759: 1757: 1754: 1752: 1749: 1745: 1742: 1741: 1740: 1737: 1736: 1734: 1730: 1722: 1719: 1718: 1716: 1713: 1710: 1707: 1704: 1701: 1698: 1695: 1694: 1692: 1688: 1682: 1679: 1677: 1674: 1672: 1669: 1667: 1664: 1662: 1659: 1657: 1654: 1653: 1651: 1645: 1631: 1628: 1626: 1623: 1622: 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702:Greenspan put 700: 697: 696: 692: 689: 688: 684: 681: 678: 675: 672: 669: 666: 663: 660: 657: 654: 651: 648: 645: 642: 639: 636: 633: 630: 627: 624: 621: 618: 615: 612: 609: 606: 603: 600: 598: 595: 592: 589: 587: 584: 581: 578: 575: 572: 569: 566: 563: 560: 557: 554: 551: 548: 545: 542: 539: 536: 533: 530: 527: 524: 521: 518: 517: 515: 512: 507: 503: 497: 494: 490: 487: 486: 485: 482: 480: 479:Federal funds 477: 473: 470: 469: 468: 465: 464: 462: 460:Federal funds 458: 452: 449: 447: 444: 442: 439: 438: 436: 432: 417: 414: 412: 409: 408: 406: 404: 400: 394: 391: 389: 386: 384: 381: 379: 376: 374: 371: 370: 367: 363: 356: 351: 349: 344: 342: 337: 336: 333: 327: 324: 322: 319: 318: 297: 293: 287: 272: 268: 261: 246: 242: 236: 228: 224: 217: 201: 197: 191: 187: 177: 174: 173: 167: 165: 161: 157: 153: 149: 145: 141: 135: 131: 121: 118: 114: 105: 103: 99: 94: 92: 87: 83: 73: 71: 67: 63: 59: 53: 43: 41: 37: 33: 29: 25: 21: 1469: 1129:Central bank 1108:Mary C. Daly 1022:Philadelphia 975:Lisa D. Cook 955:Michael Barr 908:Janet Yellen 902:Ben Bernanke 890:Paul Volcker 848:Eugene Meyer 842:Roy A. Young 802: 796: 761: 749: 693: 685: 614:FOMC actions 568:Regulation Q 556:Regulation D 300:. Retrieved 295: 286: 274:. Retrieved 270: 260: 248:. Retrieved 244: 235: 216: 204:. Retrieved 199: 190: 137: 119: 115: 111: 95: 79: 55: 19: 18: 1709:Arab Spring 1618:Non-banking 1350:Tom Petters 1098:Lorie Logan 1092:Kansas City 1088:Jeff Schmid 1082:Minneapolis 910:(2014–2018) 904:(2006–2014) 898:(1987–2006) 892:(1979–1987) 886:(1978–1979) 880:(1970–1978) 874:(1951–1970) 868:(1948–1951) 862:(1934–1948) 856:(1933–1934) 850:(1930–1933) 844:(1927–1930) 838:(1923–1927) 832:(1916–1922) 826:(1914–1916) 799:(2020–2021) 777:(2009–2010) 758:(2008–2010) 752:(2008–2010) 734:(2007–2010) 626:Nixon shock 593:(1944–1971) 538:Pittman Act 528:(1909–1912) 511:Antecedents 108:Eligibility 76:Explanation 26:during the 1804:Categories 949:Vice Chair 550:Phelan Act 441:Beige Book 378:Vice Chair 182:References 150:and wider 128:See also: 50:See also: 1328:Tom Hayes 1225:By region 1176:Sahm rule 1139:Fed model 1072:St. Louis 1032:Cleveland 927:governors 714:FIRRE Act 680:DIDMC Act 558:(c. 1930) 472:Bank rate 403:Banknotes 383:Governors 1625:Chrysler 1237:Americas 1144:Fedspeak 1042:Richmond 1012:New York 544:Edge Act 302:17 March 276:17 March 250:18 March 206:19 March 170:See also 1271:Oceania 1264:Iceland 1164:History 1149:Fed put 1122:Related 1062:Chicago 1052:Atlanta 925:Current 789:(2010; 783:(2009–) 506:History 434:Reports 227:1911454 34:of the 1259:Europe 1232:Africa 1102:Dallas 1002:Boston 816:Chairs 807:(2024) 766:(2009) 746:(2008) 740:(2008) 728:(1999) 722:(1991) 716:(1989) 710:(1987) 704:(1987) 698:(1985) 690:(1981) 682:(1980) 676:(1978) 670:(1978) 664:(1978) 658:(1977) 652:(1977) 646:(1975) 640:(1974) 634:(1971) 628:(1971) 622:(1968) 610:(1956) 604:(1951) 582:(1934) 576:(1933) 570:(1933) 564:(1933) 552:(1920) 546:(1919) 540:(1918) 534:(1913) 522:(1908) 225:  939:Chair 373:Chair 1526:U.S. 1254:Asia 304:2020 278:2020 252:2020 223:SSRN 208:2020 142:and 132:and 86:AIG 1806:: 1521:EU 294:. 269:. 243:. 198:. 166:. 1210:e 1203:t 1196:v 1114:) 1110:( 1104:) 1100:( 1094:) 1090:( 1084:) 1080:( 1074:) 1070:( 1064:) 1060:( 1054:) 1050:( 1044:) 1040:( 1034:) 1030:( 1024:) 1020:( 1014:) 1010:( 1004:) 1000:( 961:) 957:( 951:) 947:( 941:) 937:( 793:) 513:) 509:( 354:e 347:t 340:v 306:. 280:. 254:. 229:. 210:.

Index

Federal Reserve Board
financial crisis of 2007–08
financial impact
COVID-19 pandemic
2020 stock market crash
Financial crisis of 2007–08
special purpose vehicle
commercial paper
Federal Reserve Bank of New York
asset-backed commercial paper
Lehman Brothers
AIG
Troubled Asset Relief Program
Federal Deposit Insurance Corporation
Temporary Liquidity Guarantee Program
2020 stock market crash
Financial impact of the COVID-19 pandemic
global stock market crash
Russia–Saudi Arabia oil price war
corporate debt bubble
financial turmoil
COVID-19 pandemic
U.S. Treasury Department
Exchange Stabilization Fund
Federal Reserve System
"Regulatory Reform - Commercial Paper Funding Facility (CPFF)"
SSRN
1911454
"Commercial Paper Funding Facility: Frequently Asked Questions"
"Federal Reserve launches special fund to keep credit flowing in U.S. economy during coronavirus scare"

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