Auctions implemented by the Federal Reserve Bank of New York during the Great Recession

Armantier, Olivier; Sporn, John

Report

Auctions implemented by the Federal Reserve Bank of New York during the Great Recession

Abstract: During the Great Recession, the Federal Reserve implemented several novel programs to address adverse conditions in financial markets. Three of these temporary programs relied on an auction mechanism: the Term Auction Facility, the Term Securities Lending Facility, and the disposition of the Maiden Lane II portfolio. These auctions differed from one another in several dimensions: their objectives, rules, and the financial asset being traded. The object of this paper is to document, compare, and provide a rationale for the mechanics of the different auctions implemented by the Federal Reserve during the Great Recession.

Keywords: financial crisis; auctions;

JEL Classification: D02; N22; D44;