“A new study from the New York Fed, The Evolution of Treasury Cash Management during the Financial Crisis, reveals how the U.S. Treasury altered its cash management practices during the 2008-09 financial crisis to facilitate the Federal Reserve’s expansion of credit to banks, primary dealers, and foreign central banks. Author Paul Santoro argues that this interaction exemplifies the close working relationship between the two institutions and the way in which each helps the other to carry out its statutory responsibilities. As Santoro explains at the beginning of the study, the Treasury maintained its cash balances in two types of accounts: the Treasury General Account (TGA) at the Federal Reserve and the Treasury Tax and Loan Note accounts (TT&L accounts) at private depository institutions. In 2008, the relative size and stability of these accounts underwent a dramatic reversal as the Treasury took steps to accommodate the Fed’s extension of large amounts of credit through its lending facilities and other programs.”