CRS Report – Federal Reserve: Emergency Lending, Updated March 27, 2020. “The 2007-2009 financial crisis led the Federal Reserve (Fed) to revive an obscure provision found in Section 13(3) of the Federal Reserve Act (12 U.S.C. 344) to extend credit to nonbank financial firms for the first time since the 1930s.”
See also CRS Report – Treasury’s Exchange Stabilization Fund and COVID-19, March 26, 2020. “As part of the U.S. government’s economic response to the corona virus disease 2019(COVID-19), the“third” COVID-19 stimulus package (H.R. 748), as passed by the Senate on March 25, would appropriate $500 billion to the U.S. Department of Treasury’s Exchange Stabilization Fund (ESF) to support loans, loan guarantees, and investments for businesses affected by COVID-19.In addition, the legislation would temporarily permit the use of the ESF to guarantee money markets, as occurred in the 2008 financial crisis. ESF assets have already been pledged in 2020 to backstop several emergency lending facilities created by the Federal Reserve (Fed) in response to financial turmoil caused by COVID-19.