Enough already !
21 months ago: Although the Federal Reserve has become more open over the years, it is still one of the most mysterious Washington institutions. These photos from files or provided by the Federal Reserve are the people, who hold such power over each American's pocket book: from top left, Chairman of the Federal Reserve Ben Bernanke; Federal Reserve Governor Susan Bies; Federal Reserve Vice Chairman Donald Kohn; Federal Reserve Governor Kevin Warsh; Federal Reserve Governor Randall Kroszner; Michael Moskow, president of the Federal Reserve Bank of Chicago; Federal Reserve Governor Frederic Mishkin; Timothy Geithner, president of the Federal Reserve Bank of New York; William Poole, president of the Federal Reserve Bank of St. Louis; Cathy Minehan, president of the Federal Reserve Bank of Boston; Thomas Hoenig, president of the Federal Reserve Bank of Kansas City.
Fed to buy commercial papers from money mkt mutual funds (click on title to entry, thank you)
Washington, Oct 21: The US Federal Reserve on Tuesday said it will buy commercial papers and deposit certificates, among others from the country's money market mutual funds, a move aimed at bolstering short-term liquidity in the system.
For the purpose, the Federal Reserve has created Money Market Investor Funding Facility (MMIFF), which would support a private-sector initiative designed to provide liquidity to the nation's money market investors.
The Federal Reserve in a statement said eligible assets would include US dollar-denominated certificates of deposit and commercial paper issued by highly rated financial institutions and having remaining maturities of 90 days or less.
Eligible investors would include US money market mutual funds and over time may include other US money market investors. "
The short-term debt markets have been under considerable strain in recent weeks as money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs.
"By facilitating the sales of money market instruments in the secondary market, the MMIFF should improve the liquidity position of money market investors, thus increasing their ability to meet any further redemption requests and their willingness to invest in money market instruments," the Fed said.
Under the programme, the Federal Reserve Bank of New York would provide senior secured funding to a series of special purpose vehicles to facilitate an industry-supported private-sector initiative.
Bureau Report
