FRB Establishes Bank Term Funding Program to Aid Liquidity Availability

As we noted very briefly on Monday in our “Quick Take on a Sudden Change in the Banking Landscape,” among the various actions the government took Sunday evening to try to stabilize the banking market, the Federal Reserve Board (“FRB”) invoked its authority under Section 13(3) of the Federal Reserve Act to establish the Bank Term Funding Program (“BTFP”) “to support American businesses and households by making additional funding available to eligible depository institutions to help assure banks...
By: Cadwalader, Wickersham & Taft LLP