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Asset-Backed Commercial Paper Facility Extended

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  • John M. Baker
    The Federal Reserve has announced that the Asset-Backed Commercial Paper Money Market Fund Liquidity Facility will be extended through April 30, 2009. The
    Message 1 of 1 , Dec 2, 2008
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      The Federal Reserve has announced that the Asset-Backed Commercial
      Paper Money Market Fund Liquidity Facility will be extended through
      April 30, 2009. The facility provides nonrecourse loans to
      depository institutions and bank holding companies to fund purchases
      of high-quality asset-backed commercial paper from money market funds
      at amortized cost. Previously the program was to stop making new
      extensions of credit on January 30, 2009. The Federal Reserve also
      extended to April 30 two other liquidity facilities, the Primary
      Dealer Credit Facility and the Term Securities Lending Facility, both
      of which provide support to primary dealers.

      The Federal Reserve announcement is at

      http://www.federalreserve.gov/newsevents/press/monetary/20081202b.htm

      The facility's program page is at

      http://www.frbdiscountwindow.org/mmmf.cfm?hdrID=14

      For my most recent post on the facility, see

      http://groups.yahoo.com/group/FundLaw/message/1187

      As of November 26, the facility had about $53 billion outstanding,
      according to the Federal Reserve's H.4.1 statistical release. The
      facility earlier had had almost $100 billion more, the reduction
      presumably being due to the maturity of much of the asset-backed
      commercial paper. The H.4.1 release also shows that the Money Market
      Investor Funding Facility, which was scheduled to commence operation
      on November 24, still had not funded the purchase of a single
      security on November 26. The release is available online at

      http://www.federalreserve.gov/releases/h41/Current/



      John M. Baker <JMB@...>
      Stradley Ronon Stevens & Young, LLP http://www.stradley.com
      1250 Connecticut Avenue, NW, Suite 500
      Washington, DC 20036
      202.419.8413
      202.822.0140 fax
      FundLaw Listowner http://groups.yahoo.com/group/fundlaw
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