The Federal Reserve's commercial paper funding facility

Arbeitspapier

The Federal Reserve created the Commercial Paper Funding Facility (CPFF) in the midst of severe disruptions in money markets following the bankruptcy of Lehman Brothers on September 15, 2008. The CPFF finances the purchase of highly rated unsecured and asset-backed commercial paper from eligible issuers via primary dealers. The CPFF was a liquidity backstop to U.S. issuers of commercial paper, and its creation was part of a range of policy actions undertaken by the Federal Reserve to provide liquidity to the financial system. This paper documents aspects of the financial crisis relevant to the creation of the CPFF, reviews the operation of the CPFF, discusses usage of the facility, and draws conclusions for lending of last resort facilities in a market based financial system.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Staff Report ; No. 423

Classification and Topics

• Classification: Wirtschaft ; Financial Markets and the Macroeconomy ; Central Banks and Their Policies ; General Financial Markets: Government Policy and Regulation
• Subject: Federal Reserve ; lender of last resort ; Commercial Paper ; Lender of Last Resort ; Finanzmarktkrise ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Adrian, Tobias ; Kimbrough, Karin ; Marchioni, Dina
• Event: Veröffentlichung
• (who): Federal Reserve Bank of New York
• (where): New York, NY
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/60775
• Last update: 10.03.2025, 11:44 AM CET