Agencies Issue Final Rule to Implement Unlawful Internet Gambling Enforcement Act

Nov. 12 — The Department of the Treasury and the Federal Reserve Board announced the release of a joint final rule to implement the Unlawful Internet Gambling Enforcement Act of 2006. The Act prohibits gambling businesses from knowingly accepting payments in connection with unlawful Internet gambling, including payments made through credit cards, electronic funds transfers and checks. (Read more.)

Fed Announces Reduced Number of Check Processing Sites and Accelerated Restructuring Schedule

Nov. 6 — The Federal Reserve announced that the Cleveland Fed will serve as the single paper check processing and adjustments site and that the Atlanta Fed will serve as the single electronic check processing site for the Federal Reserve System. The Reserve banks also announced they will use a flexible restructuring schedule that scales back or shifts operations at their other sites when paper check volumes no longer justify the existing operation. (Read more.)

Fed Warns Consumers against Fraudulent Solicitation

Nov. 4 — The Federal Reserve Board has alerted the public to instances of questionable solicitations directed at consumers. These solicitations promise consumers access to personal loans through a nonexistent Federal Reserve lending program. Under this fraudulent scheme, targeted individuals are told that that they can work through a broker to access a Federal Reserve program that extends sizable secured loans to consumers.  (Read more.)

2009 Fee Schedules for Payment Services Approved

Oct. 30 — The Federal Reserve Board announced the approval of fee schedules for payment services the Federal Reserve Banks provide to depository institutions (priced services), effective Jan. 2, 2009. (Read more.)

Fed, Central Banks in Brazil, Mexico, Korea and Singapore, Announce Swap Lines

Oct. 29 — The Federal Reserve, the Banco Central do Brasil, the Banco de Mexico, the Bank of Korea and the Monetary Authority of Singapore announced the establishment of temporary reciprocal currency arrangements (swap lines). These facilities, like those with other central banks, are designed to mitigate the difficulties in obtaining U.S. dollar funding in fundamentally sound and well-managed economies. (Read more.)

FOMC Cuts Rate Target to 1 Percent

Oct. 29 —The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 1 percent. Read the press release.

Fed, New Zealand Central Bank Announce Swap Line

Oct. 28 — The Federal Reserve and the Reserve Bank of New Zealand announced the establishment of a temporary reciprocal currency arrangement (swap line) to address ongoing, elevated pressures in U.S. dollar short-term funding markets.  This facility, like those already established with other central banks, is designed to help improve liquidity conditions in global financial markets. (Read more.)

Regulatory Agencies: Eligible Institutions Should Use Capital Purchase and Liquidity Guarantee Programs 

Oct. 20 — The federal banking and thrift regulatory agencies in a joint press release encouraged all eligible institutions to use the Treasury’s Capital Purchase Program and the FDIC’s Temporary Liquidity Guarantee Program. The two programs complement one another, and, through them, fresh capital and liquidity are available to foster new lending in our nation’s communities. (Read more.)

Fed Announces Revised Check Restructuring Schedule

Oct. 16 — Over the last several years, the Reserve banks have been restructuring their check processing infrastructure in response to rapidly declining paper volumes. In March, the Fed announced a plan that targeted a transition to four regional check processing locations by early 2010. As a result of dramatically declining paper check volumes, the Reserve banks have developed a revised schedule that will significantly accelerate the timeline announced in March. All current processing offices will be affected by the revised schedule, including those in the Eighth District. (Read more.)

Beige Book: Business Conditions Continue To Deteriorate

Oct. 15 — Economic activity weakened in September across all 12 Federal Reserve districts, according to the latest issue of the Beige Book. In the Eighth District, conditions have continued to weaken since the previous report. Hear more in an interview with Fed Economist Howard Wall.

Treasury, Federal Reserve and FDIC Issue Joint Statement

Oct. 14 — The following statement was made by Treasury Secretary Henry Paulson, Fed Chairman Ben Bernanke and FDIC Chairman Sheila Bair: "Today we are taking decisive actions to protect the U.S. economy, to strengthen public confidence in our financial institutions, and to foster the robust functioning of our credit markets. These steps will ensure that the U.S. financial system performs its vital role of providing credit to households and businesses and protecting savings and investments in a manner that promotes strong economic growth in the U.S. and around the world." (Read more.)

Board Provides Details on Commercial Paper Funding Facility

Oct. 14 — The Federal Reserve Board announced additional details about the Commercial Paper Funding Facility, including that it would begin funding purchases of commercial paper on Oct. 27, 2008. (Read more.)

Central Banks Announce Additional Liquidity Measures

Oct. 13 — To provide broad access to liquidity and funding to financial institutions, the Bank of England, the European Central Bank, the Federal Reserve, the Bank of Japan and the Swiss National Bank are jointly announcing further measures to improve liquidity in short-term U.S. dollar funding markets. (Read more.)

Fed Creates Commercial Paper Funding Facility

Oct. 7 — The Federal Reserve announced the creation of the Commercial Paper Funding Facility, which will complement the Fed's existing credit facilities to help provide liquidity to term funding markets. The facility will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle that will purchase three-month unsecured and asset-backed commercial paper directly from eligible issuers. (Read more.)

Fed To Pay Interest on Reserve Balances

Oct. 6 — The Federal Reserve announced that it will begin to pay interest on depository institutions' required and excess reserve balances. The payment of interest on excess reserve balances will give the Federal Reserve greater scope to use its lending programs to address conditions in credit markets while also maintaining the federal funds rate close to the target established by the Federal Open Market Committee. Consistent with this increased scope, the Fed also announced additional actions to strengthen its support of term lending markets. (Read more.)

Central Banks Take Measures To Address Funding Pressures over Quarter End

Sept. 26 — The Fed and other central banks have been employing coordinated measures designed to address the pressures in global money markets. Most recently, central banks have acted together to inject dollars into the overnight markets. Using their reciprocal currency arrangements with the Federal Reserve, several central banks are announcing the introduction of operations to provide U.S. dollar liquidity with a one-week maturity. These operations are designed to address funding pressures over quarter end. (Read more.)

Additional Central Banks Join Fed in Reciprocal Currency Arrangements

Sept. 24 — The Federal Reserve, the Reserve Bank of Australia, the Danmarks Nationalbank, the Norges Bank and the Sveriges Riksbank announced the establishment of temporary reciprocal currency arrangements (swap lines) to address elevated pressures in U.S. dollar short-term funding markets.  These facilities, like those already in place with other central banks, are designed to improve liquidity conditions in global financial markets.  (Read more.)

Stay Up-to-Date on Fed Actions with New Web Page

To get the latest on steps the Federal Reserve is taking to stabilize the economy and improve liquidity in the market, bookmark "Information Regarding Recent Federal Reserve Actions," a new web page on the Board of Governors web site.

Fed Board Approves Bank Holding Company Status for Goldman Sachs, Morgan Stanley

Sept. 21 — The Federal Reserve Board approved the applications of Goldman Sachs and Morgan Stanley to become bank holding companies. To provide increased liquidity support to these firms as they transition to managing their funding within a bank holding company structure, the Board authorized the New York Fed to extend credit to the two companies against all types of collateral that may be pledged at the Fed's primary credit facility for depository institutions or at the existing Primary Dealer Credit Facility; the Fed has also made these collateral arrangements available to Merrill Lynch. (Read the press release.) In a related statement, the Board said that, based on consultation with the Department of Justice, the transactions may be consummated immediately without the application of the five-day antitrust waiting period.

Fed, Central Banks Announce Measures to Improve Market Liquidity

Sept. 19 — The Federal Reserve announced two enhancements to its programs to provide liquidity to markets. One initiative will extend non-recourse loans at the primary credit rate to U.S. depository institutions and bank holding companies to finance purchases of high-quality asset-backed commercial paper from money market mutual funds. To further support market functioning, the Fed also plans to purchase from primary dealers federal agency discount notes, which are short-term debt obligations issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks. (Read more.) That announcement followed one on Sept. 18 by the Fed and several other central banks who are undertaking coordinated measures to address continued elevated pressures in U.S. dollar short-term funding markets. These measures, together with other actions taken recently by individual central banks, are designed to improve the liquidity conditions in global financial markets. (Read more.)