The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Credit markets regulation: Desperate measures…

March 7

Fed increases the term auction facility (TAF) by $40 billion. TAF was first unveiled as a temporary 28-day borrowing facility for depository banks in December to avoid the stigma of using the Discount Window.

March 11

Fed creates $200 billion new lending facility for primary dealers called term securities lending facility (TSLF). This emergency measure gives brokers liquidity for 28 days rather than overnight and is the first time non-deposit taking financial institutions have been able to borrow from the Fed since the Great Depression.

March 14

Fed bails out Bear Stearns via JPMorgan Chase. Fed also agrees to provide $30 billion of funding.

March 18

Citing a weak economic outlook, slowing consumer spending, labour markets and stress in financial markets, the Federal Open Market Committee cut the federal funds rate by 75 basis points to 2.25%. Fed funds was 5.25% in the summer. Discount rate was simultaneously reduced by 75bp to 2.5%. The gap between the discount and funds rates was 100 basis points before the crunch took hold.

March 19

The rehabilitation of the US government sponsored enterprises (GSEs) is now complete.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?