CongressionalHearings/TARP/CHRG-110shrg50415/CHRG-110shrg50415--2.txt The Chairman of the Federal Reserve , Ben Bernanke , and Treasury Secretary Hank Paulson and many other respected individuals have all agreed on that fact . CongressionalHearings/TARP/CHRG-110shrg50417/CHRG-110shrg50417--19.txt If there were not Federal deposit insurance and access to the Federal-backed liquidity windows at the Federal Reserve and Federal Home Loan Bank , not a single one of these banks would have survived from August 2007 until today . CongressionalHearings/Dodd-Frank/CHRG-110hhrg45625/CHRG-110hhrg45625--52.txt At the Federal Reserve , we have sought to address financial market stresses with as minimal exposure for the U.S. taxpayer as possible . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--27.txt I will begin by talking about our activities as the regulator of Fannie Mae , Freddie Mac , and the Federal Home Loan Banks , and then turn to TARP . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--27.txt The Federal Home Loan Banks counter-cyclical capital structure has allowed them to play a critical role in supporting financial institutions and mortgage lending over the last year . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--27.txt Treasury has also provided the Enterprises and the Federal Home Loan Banks credit facilities to provide liquidity if needed . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--27.txt The objective applies to all Federal agencies that hold troubled assets , including FHFA as conservator of Fannie Mae and Freddie Mac . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--27.txt Fannie Mae , Freddie Mac , and the 12 Federal Home Loan Banks have played a critical role in dampening that pendulum swing . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--29.txt As provided in the Act , the Federal Reserve Board and its staff are consulting with Treasury regarding the TARP and Chairman Bernanke serves as Chairman of the Oversight Board for TARP . FOMC2008_csv/FOMC20080310confcall--87.txt MR. ALVAREZ This authority shall expire at such time as determined by the Federal Open Market Committee or the Board of Governors . '' '' '' FOMC2008_csv/FOMC20080310confcall--87.txt MR. ALVAREZ The Federal Reserve Bank of New York may reject bids which could facilitate a dealer 's ability to control a single issue as determined solely by the Federal Reserve Bank of New York . FOMC2008_csv/FOMC20080310confcall--87.txt MR. ALVAREZ These lending transactions may be against pledges of U.S. government securities , other assets that the Reserve Bank is specifically authorized to buy and sell under section 14 of the Federal Reserve Act -LRB- including federal agency residential-mortgage-backed securities -RRB- , and nonagency AAA-rated residential-mortgage-backed securities . FOMC2008_csv/FOMC20080625meeting--96.txt MR. KROSZNER A lot of institutions rely on the Federal Home Loan Banks , but those are largely tapped out as another source of financing . CongressionalHearings/TARP/CHRG-110shrg50415/CHRG-110shrg50415--21.txt The third largest lender , also accounting for about 5 percent , was Third Federal Savings , which I have to say , Mr. Chairman , there are some heroes in this crisis . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--170.txt 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 . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--170.txt Treasury , working in concert with the Federal Reserve and FHFA , has been closely monitoring financial markets , particularly credit markets in terms of the impact and consequences of our actions . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--170.txt There has been significant confusion in the marketplace regarding the status of debt offered by Fannie Mae and Freddie Mac . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--170.txt The EESA created the Financial Stability Oversight Board , which includes the same members as the FHFA Oversight Board plus the Federal Reserve Chairman . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--170.txt 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- . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--170.txt 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 . CongressionalHearings/TARP/CHRG-110hhrg46593/CHRG-110hhrg46593--192.txt And last , Mr. Chairman , we believe that the Federal Reserve , and we have communicated this to the Federal Reserve , should take specific and proactive and aggressive steps to expedite the application of bank holding companies . CongressionalHearings/TARP/CHRG-110shrg50417/CHRG-110shrg50417--153.txt Raise the current threshold from $ 350,000 to $ 1 million.Other SBA current program for micro-loan funding is inadequate for the borrowers under $ 35,000 . CongressionalHearings/TARP/CHRG-110shrg50417/CHRG-110shrg50417--2.txt Today 's hearing is entitled `` Examining the Financial Institution 's Use of Funding under the Capital Purchase Program , '' and so I welcome all who are here . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--169.txt Section 109 provides that `` the Secretary may use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures . '' CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--169.txt 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 . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--169.txt The interest rate charged will not be greater than the current Freddie Mac Weekly Survey Rate at the time of modification . CongressionalHearings/TARP/CHRG-110hhrg46593/CHRG-110hhrg46593--16.txt As you know , in concert with the Treasury and the Federal Reserve , we took a number of actions to bolster confidence in the banking system . CongressionalHearings/TARP/CHRG-110shrg50415/CHRG-110shrg50415--24.txt More than 53 percent of African American borrowers were given subprime loans compared versus 14 percent of whites , according to ComplianceTech . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--171.txt 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 . CongressionalHearings/TARP/CHRG-110shrg50416/CHRG-110shrg50416--171.txt Federal Reserve representatives are also in regular contact with AIG senior management and attend all AIG board meetings and board committee meetings.Q .8 . CongressionalHearings/TARP/CHRG-110hhrg46593/CHRG-110hhrg46593--321.txt Because one of the occurrences that we listen to over and over again in this committee is the Federal Reserve coming up here and also Treasury Secretaries saying that there was a systemic risk to the economy because of the leveraging that was occurring in the system . CongressionalHearings/TARP/CHRG-110shrg50414/CHRG-110shrg50414--56.txt Mr. Lockhart , '' Chairman Dodd , Senator Shelby , and Members of the Committee , thank you for the opportunity to testify on the Federal Housing Finance Agency 's decision to place Fannie Mae and Freddie Mac into conservatorship . CongressionalHearings/TARP/CHRG-110shrg50414/CHRG-110shrg50414--56.txt I shared our growing concerns with Federal Reserve Chairman Bernanke , who was made our consultant in the law you passed in July , and with Secretary Paulson .