Fed announces new stabilization efforts
Yesterday, the Federal Reserve announced a new stabilization package and committed to using the full range of its authorities aimed toward supporting the economy during the coronavirus pandemic.
Included in these actions is a plan for the Federal Open Market Committee (FOMC) to purchase the Treasury Department’s securities and agency mortgage-backed securities (MBS) in the amounts needed to support smooth market functioning.
The Fed will buy Treasury securities and agency MBS “in the amounts needed to support smooth market functioning.” This effort will begin this week at $625 billion and will scale up if needed. Previously, the Fed announced that the FOMC would buy at least $500 billion Treasury securities and $200 billion agency MBS in an effort to stabilize and support the economy. Long-term Treasury yields rose last week, however, and mortgage rates remain elevated relative to those yields.
Also included in the package is the purchase of agency commercial mortgage-backed securities in an attempt to support the flow of credit to households and businesses.
Additionally, the Fed will establish three facilities to support the flow of credit to consumers:
- the Term Asset-Backed Securities Loan Facility (TALF), under which the Fed will lend on a non-recourse basis to holders of certain AAA-rated asset-backed securities backed by newly and recently originated consumer and small business loans;
- the Primary Market Corporate Credit Facility for new bond and loan issuance; and
- the Secondary Market Corporate Credit Facility to provide liquidity for outstanding corporate bonds.
In addition, the Fed announced it will soon unveil a Main Street Business Lending Facility aimed at supporting small businesses.
NAFCU Vice President of Research and Chief Economist Curt Long discussed the Fed’s efforts during a NAFCU member-only webinar last week. The webinar explained the economic toll the coronavirus is currently taking on the U.S. and world, and is available online for members to access on-demand. Long also has an economic brief outlining the potential impact of the coronavirus on the credit union industry and U.S.
Add to Calendar 2020-03-26 14:00:00 2020-03-26 14:00:00 Data Breaches – Mitigation and Response Strategies As data breaches continue to make the headlines credit unions are challenged to maintain member confidence in their ability to recognize, react and respond to intrusions in order to safeguard member financial information and transactions. A core component of cybersecurity risk management is a well-designed Incident Response program that supports the credit union’s needs. This session will summarize up to date information on the latest cybersecurity risks and how breaches occur. We will also explore regulatory guidance and current practices for a credit union to define and manage an incident response program. Key Takeaways Understand the latest developments in ransomware and account take over attacks Explore case studies from recent intrusions, breaches and lessons learned from each case study Learn how to describe key risks and controls to mitigate and respond to breaches in Office 365 Understand the various aspects of the “Cybersecurity Kill Chain” Define key strategies to test your institution’s Incident Response program Register Now$295 Members | $395 Nonmembers (Additional $50 for CD) One registration gives your entire credit union access to the on-demand recording until March 26, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Compliance staff Risk management staff Legal staff Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand the latest developments in ransomware and account take over attacks. Explore case studies from recent intrusions, breaches and lessons learned from each case study. Learn how to describe key risks and controls to mitigate and respond to breaches in Office 365. Understand the various aspects of the "Cybersecurity Kill Chain". Define key strategies to test your institution's Incident Response program. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Regulatory Ethics - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
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