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With
thanks to Calculated Risk who published this table earlier, here is a breakdown
of the Fed's $13.9 Trillion Commitment as published in the FDIC Summer 2009 Supervisory Insights.
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Government
Support for Financial Assets and Liabilities Announced in 2008 and Soon
Thereafter ($ in billions)
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Important
note: Amounts are gross loans, asset and liability guarantees and asset
purchases, do not represent net cost to taxpayers, do not reflect
contributions of private capital expected to accompany some programs, and
are announced maximum program limits so that actual support may fall well
short of these levels
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Year-end 2007
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Year-end 2008
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Subsequent
or Announced Capacity If Different
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Treasury Programs
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TARP investments1
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$0
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$300
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$700
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Funding GSE conservatorships2
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$0
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$200
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$400
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Guarantee money funds3
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$0
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$3,200
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Federal Reserve Programs
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Term Auction Facility
(TAF)4
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$40
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$450
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$900
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Primary Credit5
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$6
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$94
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Commercial
Paper Funding Facility (CPFF)6
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$0
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$334
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$1,800
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Primary
Dealer Credit Facility (PDCF)5
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$0
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$37
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Single Tranche Repurchase
Agreements7
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$0
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$80
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Agency
direct obligation purchase program8
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$0
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$15
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$200
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Agency MBS program8
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$0
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$0
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$1,250
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Asset-backed
Commercial Paper Money Market Mutual Fund
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Liquidity Facility (AMLF)9
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$0
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$24
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Maiden
Lane LLC (Bear Stearns)9
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$0
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$27
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AIG (direct credit)10
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$0
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$39
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$60
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Maiden Lane II (AIG)5
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$0
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$20
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Maiden Lane III (AIG)5
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$0
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$27
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Reciprocal currency swaps11
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$14
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$554
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Term
securities lending facility (TSLF) and TSLF options program(TOP)12
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$0
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$173
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$250
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Term
Asset-Backed Securities Loan Facility (TALF)13
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$0
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$0
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$1,000
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Money
Market Investor Funding Facility (MMIFF)14
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$0
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$0
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$600
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Treasury Purchase Program (TPP)15
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$0
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$0
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$300
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FDIC Programs
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Insured
non-interest bearing transactions accounts16
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$0
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$684
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Temporary
Liquidity Guarantee Program (TLGP)17
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$0
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$224
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$940
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Joint Programs
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Citi asset guarantee18
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$0
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$306
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Bank of
America asset guarantee19
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$0
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$0
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$118
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Public-Private
Investment Program (PPIP)20
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$0
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$0
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$500
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Estimated
Reductions to Correct for Double Counting
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TARP
allocation to Citi and Bank of America asset
guarantee21
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– $13
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TARP allocation to TALF21
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– $80
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TARP allocation to PPIP21
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– $75
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Total
Gross Support Extended During 2008
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$6,788
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Maximum
capacity of support programs announced through first quarter 200922
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$13,903
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Table notes:
1 $300 is as of 1-23-2009 as reported in SIGTARP report of February 6
2009; EESA authorized $700.
2 Year-end reflects Treasury announcement of September 7, 2009,
capacity reflects Treasury announcement of February 18, 2009; funding
authorized under Housing and Economic Recovery Act.
3 Informal estimate of amount guaranteed at year-end 2008, provided by
Treasury staff.
4 Year-end balances from Federal Reserve Statistical Release H.R. 1,
“Factors Affecting Reserve Balances” (henceforth, H.R. 1);
capacity from “Domestic Open Market Operations During 2008”
(Report to the Federal Open Market Committee, January 2009), page 24.
5 Year-end balances from H.R. 1.
6 Year-end balances from H.R. 1; capacity from “Report Pursuant
to Section 129 of the Emergency Economic Stabilization Act of 2008:
Commercial Paper Funding Facility,” accessed May 26, 2009, from
http://www.newyorkfed.org/aboutthefed/annual/annual08/CPFFfinstmt2009.pdf.
7 Year-end balances from H.R. 1; see also “Domestic Open Market
Operations During 2008” (henceforth “DOMO report”) report
to the Federal Open Market Committee, January 2009, page 11, summary of
activity in program announced March 7 by the Federal Reserve.
8 Year-end balances from H.R. 1, capacity from Federal Reserve
announcements of November 25, 2008 and March 18, 2009.
9 H.R. 1.
10 Year-end balances from H.R. 1; capacity from periodic report
pursuant to EESA, “Update on Outstanding Lending Facilities Authorized
by the Board Under Section 13(3) of the Federal Reserve Act,” February
25, 2009, page 8, henceforth referred to as “Update;” Federal
Reserve AIG support is separate from Treasury support that is included in the
TARP line item.
11 Year-end balances reported in DOMO report, page 25.
12 Year-end balances from H.R. 1; capacity from Federal Reserve
announcement of March 11, 2008, Federal Reserve Bank of New York press
release of August 8, 2008, and discussion at page 22 of DOMO report.
13 From “Update,” page 2.
14 From “Report Pursuant to Section 129 of the Emergency
Economic Stabilization Act of 2008: Money Market Investor Funding
Facility,” accessed May 26, 2009, from
http://www.federalreserve.gov/monetarypolicy/files/129mmiff.pdf; Federal
Reserve to fund 90 percent of financing or $540 billion.
15 Program and capacity announced by the Federal Reserve, March 18,
2009.
16 FDIC Quarterly Banking Profile, Fourth Quarter 2008, (henceforth,
“QBP”) Table III-C.
17 Year-end outstanding from QBP, Table IV-C; total estimated cap for
all entities opting in the program from QBP, Table II-C.
18 Announcement by FDIC, Treasury, and
Federal Reserve November 23, 2008.
19 Announcement by FDIC, Treasury, and
Federal Reserve of January 16, 2009.
20 To purchase legacy assets, as described in Treasury, FDIC, and
Federal Reserve announcement of March 23, 2009. $500 refers to maximum
capacity of Legacy Loans Program; funding for the Legacy Securities Program
is believed to be subsumed under the TALF.
21 SIGTARP quarterly report of April, 2009, page 38.
22 Year-end 2008 amounts plus the amount by which announced capacity
exceeds the year-end 2008 amount, minus the amount of known double counting.
Of that $13.9 Trillion Commitment,
$6.8 Trillion has already been lent in 2008. The Fed has not disclosed
precisely where all of that money has gone.
Tell the Truth or Shut Up
I have a request for Geithner and Bernanke: Tell
the truth or shut up.
Both Geithner and Bernanke maintain that banks are
well capitalized. Indeed many banks are returning TARP funds. However, if
banks are well capitalized then why not cancel the remaining $7 Trillion of
this taxpayer ripoff right now? Pray tell, what's
the need to go ahead with the PPIP?
Ben and Tim, please stop saying that taxpayers will not lose money on these
schemes. You know, I know and the whole world knows that is a preposterous
lie. Please come out and say you really do not give a damn about taxpayers
because we all know that you don't. This is a taxpayer sponsored bank
bailout, no more no less.
If you cannot give an honest assessment (and the whole world knows you can't),
then please stop your disgusting, phony charades and fake transparency
efforts.
Mish
GlobalEconomicAnalysis.blogspot.com
Also by Mish
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