Term Auction Facility ("TAF") (Fed)

Term Auction Facility (“TAF”) (Fed)

TAF a vehicle for the Federal Reserve to make cash loans to banks at below-market rates when they put up collateral. The total credit extended to banks crested at $493.145 billion on Mar. 11, 2009. However, much of the funds were simply added to the banks’ reserves held at the Federal Reserve, rather than loaning out the funds.

Funding agency and aid type
The funding agency was the Federal Reserve.

Below-market cash loans to banks that put up collateral.

Who benefits
Banks.

Related SourceWatch articles

 * SIGTARP Quarterly Report to Congress July 21, 2009
 * Troubled Asset Relief Program

External resources

 * Federal Reserve fact sheet: http://www.federalreserve.gov/monetarypolicy/taf.htm
 * FRBSTL accounting: http://www.research.stlouisfed.org/fred2/series/WTERAUC