The Federal Reserve is working as fast as possible to meet legal and operational challenges to get the ‘Main Street’ program running, the Fed said in a statement on Thursday.
Key takeaways
“Expanded ‘Main Street’ program will be powerful new tool for Fed to reach companies.”
“Higher leverage loans meant to allow banks and companies more flexibility in designing Fed participation.”
“Commercially reasonable efforts to maintain payroll means efforts that do not weaken the business; not a requirement that headcount be maintained.”
“Do not want to discourage participation in ‘Main Street’ program by adding too many restrictions.”
“Programs are designed to make sure Fed is very well protected from credit risk.”
“Actively engaged in how to allow nonprofits to participate in a Fed program.”
“Demand for ‘Main Street’ loans may be limited by need for repayment.”
“Expansion of program comes after research into what class of firms has regular access to capital markets.”
“Larger firms now included in the program are diverse and not weighted to any particular industry.”
“Can offer no insight into additional facilities at this point.”
Market reaction
Wall Street’s main indexes largely ignored these remarks. As of writing, the Dow Jones Industrial Average was down 0.9% on the day while the Nasdaq Composite was gaining 0.35%:
Share
