A $100 billion dollar fund will be set up by the Federal Reserve, the Treasury Department and the Federal Deposit Insurance Corp. to provide liquidity to financial firms that are struggling with severe cash shortages due to the global economic downturn.
The fund, which is known as the Term Asset-Backed Securities (TASB) Fund, will have a base of $100 trillion.
The Fed, the Department of the Treasury and the FDIC will work to help stabilize markets as the financial system becomes more resilient.
The Treasury Department will have an expanded role to support banks that are at risk of being unable to make payments to customers, such as the banks that lost money during the 2008 financial crisis.
The fund will initially provide funding for financial firms in the form of fixed income, fixed income products and securities.
But it will also help to help firms manage the fallout from the economic crisis.
The bank bailout that was implemented last year will be used as a temporary cushion, with the fund’s cash reserves remaining in the U.S. Treasury.
The money will be kept in a fund known as TARP, the Troubled Asset Relief Program.
The Treasury Department has been working to shore up the financial markets as markets recover.
The agency is taking on more capital to help businesses as they rebuild and pay bills.
This month, it announced a $500 million loan to the University of Chicago.
In April, it also announced $300 million in loans to businesses and organizations in the wake of the financial crisis, including more than $150 million to the UChicago Institute of Technology and $40 million to UChicago Community College.
The TASB Fund will be established to help finance large financial institutions during this economic crisis and will be funded by the federal government, the FDEC and other agencies.
The TASM, or Treasury Assured Term Asset Mktgs, will provide the funding needed to support the financial institutions.
It is unclear whether the fund will receive additional funding from the government.
Treasury Secretary Jack Lew said in a statement that “it is critical to us that we have access to the funds to support this critical period.”