MR. MADIGAN
375 , MR. MADIGAN. , '' '' `` The Federal Open Market Committee decided today to establish a target range for the federal funds rate of 0 to percent .
MR. MADIGAN
The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability .
MR. PARKINSON
Specifically , they asked the The materials used by Mr. Parkinson , Mr. Gibson , Ms. Hirtle , Mr. Greenlee , and Mr. Angulo are appended to this transcript -LRB- appendix 6 -RRB- .
MR. DUDLEY
As shown in exhibit 9 , for investment-grade debt , the widening in spreads has roughly offset the fall in Treasury yields .
I also have highly valued Chairman Bair 's efforts to promote financial literacy and address issues so important to working families .
Under Chairman Bair 's leadership , the FDIC is encouraging the development of affordable , small-dollar loans using CRA initiatives .
These reports complement the Blueprint for regulatory reform issued by the Treasury in March , which focused on broader questions of regulatory architecture .
MR. EVANS
It is my interpretation that our current accommodative monetary policy and suite of lending facilities are set to mitigate severe downside risks and the systemic risks that you mentioned earlier , Mr. Chairman .
Mr. Hensarling , '' Chairman Bernanke , the Federal Reserve has been very aggressive in developing new credit facilities , expanded facilities , reducing collateral standards for troubled financial services companies .
I have come here neither to praise the TARP nor to bury it , but rather to urge Congress to exercise its oversight authority to ensure that the Secretary of the Treasury pursues the stated goals of the legislation .
Therefore , Treasury committed to provide $ 20 billion of TARP resources in support of a $ 200 billion Federal Reserve facility -- the Term Asset-Backed Securities Loan Facility -LRB- TALF -RRB- .
Thus , Treasury does not believe that banks will `` hoard '' the capital , but rather utilize this additional capital in a safe and sound manner .
However , Treasury is using TARP to stabilize the financial system today , while regulatory modernization will likely take several years to complete.Q .12 .
The Senior Preferred Stock Purchase Agreements signed between the Enterprises and Treasury ensure consultation or agreement with the Treasury on many aspects of the Enterprises activities .
The EESA created the Financial Stability Oversight Board , which includes the same members as the FHFA Oversight Board plus the Federal Reserve Chairman .
Is this funding problem undermining the ability of the enterprises to meet its mission of maintaining a stable and orderly housing market?Q .1 .
The Treasury believes that banks and their management and shareholders are in the best position to determine whether acquisitions or mergers make sense .
A large contingency also arose that threatened the financial system , as Treasury had to restructure the Federal Reserve 's loan to AIG , using $ 40 billion of TARP funds .
MR. GIBSON
Investors who thought they were taking on credit risk became uncomfortable with the market risk and liquidity risk that are inherent in a SIV 's business model .
MR. GIBSON
Because structured-finance securities are built on diversified portfolios , they have more systematic risk and less idiosyncratic risk than corporate securities .
MR. GIBSON
To start , I 'll expand on some of the points that Pat made on the role of rating agencies in the financial crisis .
All significant U.S. financial institutions that provide credit have some form of access to Federal Reserve liquidity facilities at this time .
In this regard , the Federal Reserve supports the Treasury 's proposal to buy illiquid assets from financial institutions .
Despite the efforts of the Federal Reserve , the Treasury , and other agencies , global financial markets remain under extraordinary stress .
The Federal Reserve and the Treasury attempted to identify private sector approaches to avoid the imminent failures of AIG and Lehman Brothers , but none was forthcoming .
So far , the Treasury Department and the Fed 's response to the crisis has been a series of ad hoc measures .
The Treasury 's original plan to buy impaired loans as a way of cleaning the bank 's balance sheet simply could n't work .
Does the FDIC plan to develop a new program to extend loan modifications to a broader pool of mortgages than those held by IndyMac ?
On September 6 , 2008 , the Treasury and Federal Housing Finance Agency -LRB- FHFA -RRB- placed Fannie Mae and Freddie Mac into conservatorship , administered by the FHFA .
MR. DUDLEY
The mortgage basis remains wide in part because Fannie Mae and Freddie Mac have few incentives to expand their balance sheets .
MR. DUDLEY
The equity prices of Fannie Mae and Freddie Mac plummeted , and their ongoing viability was called into question .
What is the total sum of money the Federal Reserve System has lent to AIG through any and all actions undertaken by the Federal Reserve , including the Commercial Paper Funding Facility -LRB- CPFF -RRB- ?
Control over these instruments is exercised by the Treasury Department in compliance with the rules and conditions applicable to the TARP .
Did the Federal Reserve consider the fact that AIG was already subject to special Fed lending when deciding AIG 's eligibility to participate in the CPFF?A .2 .
However , in the Federal Reserve Board 's report to the Senate Banking Committee about the Fed 's actions with respect to AIG under Section 13 -LRB- 3 -RRB- of the Federal Reserve Act , the Board told the Committee that it does not expect the loans to result in any losses to the Federal Reserve System or the taxpayer .
MR. DUDLEY
Note that virtually all the Federal Reserve initiatives aimed at improving market function have been associated with a decline in the LIBOR OIS spread .
While the CFTC currently has jurisdiction of this market , the Treasury 's recommendation to merge SEC and FCTC seems a sensible course of action for Congress .