Gibson, Dunn & Crutcher
October 21, 2008

Dechert
October 2008 

Covington & Burling
Financial Institutions E-Alert
October 21, 2008
This Alert reviews the Fed’s creation of a money market investor funding facility (MMIFF) that will purchase eligible money market instruments from eligible investors using financing from the MMIFF and from the issuance of asset-backed commercial paper. The hope is that the facility will improve the liquidity position of money market investors by increasing their ability to meet redemption requests and willingness to invest in money market instruments.

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Bingham
October 21, 2008
This Alert notes the Fed's October 21 announcement of the creation of a “Money Market Investor Funding Facility” (MMIFF) intended to ease the considerable strain in the short-term debt markets.Under the MMIFF the Federal Reserve Bank of New York (FRBNY) will provide senior secured funding to a series of special purpose vehicles to facilitate an industry-supported private-sector initiative to finance the purchase of eligible assets from eligible investors.  Eligible assets will include U.S. dollar-denominated certificates of deposit and commercial paper issued by highly rated financial institutions and having remaining maturities of 90 days or less.  Eligible investors will include U.S. money market mutual funds and over time may include other U.S. money market investors.