Glossary of Terms of Government Sponsored Programs

TAF:Term Auction Facility. December 12, 2007. Allows any depository institution to borrow short-term funds from the Fed against highly-rated pledged collateral. Interest rate charged determined at a bi-weekly auction.

TSLF:Term Securities Lending Facility. March 11, 2008. Similar to the TAF but available to Primary Dealers.

Primary Dealer Credit Facility: March 16, 2008. Gives Primary Dealers access to a facility similar to the discount window.

AMLF: ABCP Money Market Mutual Fund Liquidity Facility. September 19, 2008. Allows money market funds to borrow funds from the Fed by pledging asset-backed commercial paper (ABCP) positions. Intended to allow money market funds to meet investor redemptions.

TMGP:Temporary Money Market Guarantee Program. September 19, 2008. Treasury guarantee assets held in participating retail money market accounts as of the date of the program.

EESA: Emergency Economic Stabilization Act of 2008. October 3, 2008. Law that established the TARP.

TARP: Troubled Asset Relief Program. October 3, 2008. Blanket program that gives Treasury funds for various efforts to address problems in the banking system.

TIP: Targeted Investment Program. October 3, 2008. Gives the Treasury power to purchase any asset deemed distressed from a systemically important institution. This has currently only been used to aide Citigroup.

AGP: Asset Guarantee Program. October 3, 2008. Gives the Treasury the power to guarantee any asset held by a systematically important institution. This power has currently only been used to aide Citigroup.

CPFF: Commercial Paper Funding Facility. October 7, 2008. Allows the Fed to directly purchase commercial paper from issuers.

TLGP: Temporary Liquidity Guarantee Program. October 14, 2008. Allows banks to issue new debt insured by the FDIC to repay bonds maturing between 2009 and 2012.

MMIFF: Money Market Investor Funding Facility. October 21, 2008. Provide funding for purchase of money market instruments, primarily commercial paper, by a variety of investors, not just money market funds.

CPP: Capital Purchase Program: October 28, 2008. Program under which the Treasury made preferred stock investments in banks using TARP funds.

TALF: Term Asset-Backed Securities Loan Facility. November 25, 2008. Provides funding from the Fed for purchase of highly-rated and recently issued asset-backed bonds. Eligible collateral currently includes primarily student loans, SBA loans, credit card, and auto loan securitizations. Is expected to be expanded to include a wider range of assets.

CAP: Capital Assistance Program. February 25, 2009. Part of the TARP, establishes a stress test for banks and allows avenues for additional Treasury funds for banks that, based on the stress test, need additional capital.

PPIP: Public-Private Investment Program for Legacy Assets. March 23, 2009. The so-called “Toxic Asset Plan.” Program designed to purchase impaired assets from banks and other institutions through various means.

PPIF: Public-Private Investment Fund. March 23, 2009. As part of the PPIP, several PPIFs will be formed by private money management firms to purchase assets. The PPIFs will function similarly to leveraged hedge funds with the FDIC and/or Fed providing the leverage.