Financial Regulatory Forum

U.S. Treasury to wind down financing program -WSJ

September 16, 2009

FINANCIAL/BAILOUT-GEITHNER    Sept 16 (Reuters) – The U.S. Treasury Department is expected to begin winding down the Supplementary Financing Program, which provides cash for Federal Reserve initiatives, to avoid hitting the $12.1 trillion debt ceiling, the Wall Street Journal reported, citing people familiar with the matter.
   The Treasury is expected to wind down the program to as little as $15 billion but government officials want to keep it in place in case it is needed in the future, the paper said.
   The Treasury Department could not be reached for comment.
   The Supplementary Financing Program was announced in September last year in which the Treasury issued bills apart from its regular borrowing program. Last fall, the Treasury had raised almost $560 billion by issuing bills under the program. (Reporting by Santosh Nadgir in Bangalore; Editing by Dan Lalor) ((santosh.nadgir@thomsonreuters.com; within U.S +1 646 223 8780; Outside U.S +91 080 4135 5800; Reuters messaging: santosh.nadgir.reuters.com@reuters.net))
 Keywords: TREASURY/FEDERALRESERVE
  
Wednesday, 16 September 2009 06:40:26RTRS [nLG711102 ] {C}ENDS

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