The Federal Reserve on Wednesday posted details of the more than 21,000 various transactions it conducted to stabilize markets during the financial crisis that dates back to the summer of 2007 according to the Fed.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires the Fed to post transaction-level details of action taken from December 1, 2007, to July 21, 2010, in the various facilities and programs enacted by the Fed to address the crisis.
According to the Fed, “The emergency liquidity programs that the Federal Reserve set up provided secured and mostly short-term loans. Over time, these programs helped to alleviate the strains and to restore normal functioning in a number of key financial markets, supporting the flow of credit to businesses and households.”
Most of these facilities have been closed and the Fed noted, “The programs achieved their intended purposes with no loss to taxpayers.”
The Financial Times estimated that the Fed doled out $3.3 trillion in emergency credit much of which went to non-U.S. banks. The FT noted that UBS was the biggest seller of commercial paper to the Commercial Paper Funding Facility (CPFF) and five of the largest users of CPFF were European banks.
In addition to the various lending facilities the Fed provided credit to several “systemically important” financial institutions. The release noted, “These actions were taken to avoid the disorderly failure of these institutions and the potential catastrophic consequences for the U.S. financial system and economy. All extensions of credit were fully secured and are in the process of being fully repaid.”