Full text of Board of Governors of the Federal Reserve System : Documents Relating to the Financial Crisis of 2007-2009 : Federal Reserve Announces Changes to Money Market Investor Funding Facility (MMIFF), January 7, 2009

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12/30/2015

Printer Version ­ Board of Governors of the Federal Reserve System

Press Release

Release Date: January 7, 2009
For immediate release
The Federal Reserve Board on Wednesday announced two changes to the Money Market Investor
Funding Facility (MMIFF).
First, the set of institutions eligible to participate in the MMIFF was expanded from U.S. money
market mutual funds to also include a number of other money market investors. The newly eligible
participants include U.S.­based securities­lending cash­collateral reinvestment funds, portfolios, and
accounts (securities lenders); and U.S.­based investment funds that operate in a manner similar to
money market mutual funds, such as certain local government investment pools, common trust
funds, and collective investment funds. The possibility that the set of eligible investors would be
expanded beyond money market mutual funds to include other money market investors was noted
when the program was first announced on October 21, 2008.
Second, the Board authorized the adjustment of several of the economic parameters of the MMIFF,
including the minimum yield on assets eligible to be sold to the MMIFF, to enable the program to
remain a viable source of backup liquidity for money market investors even at very low levels of
money market interest rates.
The Board authorized the MMIFF on October 21, 2008 under section 13(3) of the Federal Reserve
Act. The MMIFF became operational on November 24, 2008. The MMIFF is designed to serve as a
source of liquidity to money market mutual funds and other eligible money market investment
vehicles, thereby increasing their ability to meet redemption requests and their willingness to invest
in money market instruments, particularly term money market instruments. Under the MMIFF, the
Federal Reserve Bank of New York provides a credit facility to a series of special purpose vehicles
(SPVs) established by the private sector. The SPVs will purchase certain U.S. dollar­denominated,
highly rated, short­term certificates of deposit, bank notes, and commercial paper from eligible
money market investors.
Terms and conditions
Frequently asked questions
Related Press Release
October 21
Federal Reserve announces the creation of the Money Market Investor Funding Facility (MMIFF)

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