"Implementing the Fed’s Facilities: Moving at Maximum Speed with Maximum Care"
Remarks by Daleep Singh, EVP, before the Money Marketeers ( @MonMarketeers) of New York University (via audio webinar)
https://nyfed.org/3eAyLI3 

[F]inancial markets in mid-March were seized by the uncertainty caused by virus outbreak, both in terms of the speed and scale of impact on the economic outlook, and for society as a whole.

The series of policy actions announced... reflected a full recognition that the current shock is qualitatively different from the financial crisis of 2008.

By the middle of March, unusually high funding needs and pullbacks by key lenders of short-term funds led to surging rates in the market for commercial paper.
https://nyfed.org/2XFoNyZ 

[The CPFF], by providing assurances to issuers & investors that retiring commercial paper can be replaced with new issuance... will promote confidence in the market and support the flow of credit to businesses & municipalities.

At the same time that short-term commercial paper markets were nearly frozen, so too were markets for longer-term corporate borrowing – at precisely the moment when companies most needed a financing buffer.

The [PMCFF & SMCFF] will have 3 main objectives when we go live in the coming weeks: 1st, to provide broad support for market functioning in secondary markets to allow for orderly and timely risk transfer in corporate credit.
https://nyfed.org/2Vt7xKB 

2nd, to support primary issuance for businesses at funding costs that better reflect normal liquidity conditions; and 3rd, to reduce the incidence and severity of fire sales and/or indiscriminate liquidation.
https://nyfed.org/34B3FLJ 

[The] municipal liquidity facility was designed to help provide states, cities and counties with the funding needed to provide essential public services to their citizens.
https://www.federalreserve.gov/monetarypolicy/muni.htm

By ensuring the smooth functioning of this market, particularly in times of strain, [we are] providing credit that will support families, businesses, and jobs in communities, large and small, across the economy.

The Paycheck Protection Program Liquidity Facility will bolster the effectiveness of the Small Business Administration's Paycheck Protection Program by supplying liquidity to participating financial institutions.
https://www.minneapolisfed.org/banking/paycheck-protection-program

The Main Street Lending Program will enhance support for small and mid-sized businesses that were in good financial standing before the crisis. https://www.federalreserve.gov/newsevents/pressreleases/monetary20200409a.htm

TALF will support issuance of securities backed by student loans, auto loans, credit card loans, small business loans, and other debt.
https://nyfed.org/2Vcbbt6 

[W]e know that transparency will be key to sustaining public confidence in our efforts. What does this mean in practice?

- It means that when we work with outside vendors, we explain why we’re doing so, who we’re working with, and how much we’re paying for their services.

- It requires if we accelerate the vendor selection process to minimize time to market, we operate under a short-term contract and then open up the process to a competitive range of bidders.

- It means putting on our website the eligibility of borrowers and laying out terms & conditions of the facilities as clearly as possible, along with posting FAQs and providing opportunities to ask questions.

- It means that we actively explore ways to go beyond what’s required by legislation & proactively report on the usage of the facilities as much as possible.

In terms of governance, we will embed the facilities into our existing infrastructure for controls, management, and oversight.

- We will proactively identify and address conflicts of interest – real or perceived - for anyone working on the facilities.

- Personal investment guidelines will be refined as needed, and rules will be clear on the gathering of market intelligence and handling sensitive information related to the facilities.

- and balancing loss protection with financial stability goals... from policy design to the eventual wind-down.

[W]e know the ultimate definition of success is accomplishing what we set out to do in support of the American economy... and we have an obligation to the public to be accountable for all our actions.

We look forward to engaging with our oversight bodies... to ensure that the American people understand the steps we are taking on their behalf as faithful stewards of the public trust.