T-bill Auctions to Fund the Fed (Treasury)
The T-bill Auctions to Fund the Fed
|T-BILL AUCTIONS TO FUND THE FED|
|Maximum at-risk: $260B|
* See the methodology and glossary for definitions of "disbursed," etc.
Funding agency and aid type
The funding agency is the U.S. Treasury, held at the FRBNY.
“The program will consist of a series of Treasury bill auctions, separate from Treasury’s current borrowing program, with the proceeds from these auctions to be maintained in an account at the Federal Reserve Bank of New York. Funds in this account serve to drain reserves from the banking system, and will therefore offset the reserve impact of recent Federal Reserve lending and liquidity initiatives [facilities].”
Prins: “In November 2008, the Treasury announced that it would borrow $260 billion to fund the Supplementary Financing Program, whose proceeds were deposited with the Federal Reserve.” 
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