The Federal Reserve Board on Thursday broadened the set of firms eligible to transact with and provide services in three emergency lending facilities. Encouraging a broader range of agents for the Term Asset-Backed Securities Loan Facility (TALF) and counterparties for the Commercial Paper Funding Facility (CPFF) and Secondary Market Corporate Credit Facility (SMCCF) will increase the Federal Reserve’s operational capacity and insight into the respective markets.
The TALF, CPFF, and SMCCF are facilities created under section 13(3) of the Federal Reserve Act, established with the approval of the Treasury Secretary and with equity investments provided by the Treasury to help support the flow of credit to households, businesses, and the broader economy.
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