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Ken Lund
Barr stated that the program will come to an end on March 11 when its one-year term expires.
Barr declared, "The mechanism has operated as intended. Since its launch, the financial system has experienced a rapid and significant reduction in stress. The initiative has shown to be very successful."
The Fed reports that banks are presently in possession of $141.2 billion in outstanding loans under the program.
Under the BTFP, the Fed offered loans to banks, savings associations, credit unions, and other financial institutions for a maximum of one year in exchange for a variety of securities, including US Treasuries, federal agency bonds, mortgage bonds, and others.
To assist this effort, the U.S. Treasury Department has set aside $25 billion from the stabilization fund.
source: marketwatch.com
Barr declared, "The mechanism has operated as intended. Since its launch, the financial system has experienced a rapid and significant reduction in stress. The initiative has shown to be very successful."
The Fed reports that banks are presently in possession of $141.2 billion in outstanding loans under the program.
Under the BTFP, the Fed offered loans to banks, savings associations, credit unions, and other financial institutions for a maximum of one year in exchange for a variety of securities, including US Treasuries, federal agency bonds, mortgage bonds, and others.
To assist this effort, the U.S. Treasury Department has set aside $25 billion from the stabilization fund.
source: marketwatch.com
