Initial U.S. Federal Banking Responses to the COVID-19 Pandemic
On March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) into law after a marathon week of negotiations among Congressional leaders and administration officials. The CARES Act, which is the largest fiscal stimulus bill in U.S. history, creates a number of new programs and authorities for executive branch agencies, particularly the Department of the Treasury (“Treasury”) and the Board of Governors of the Federal Reserve System (the “Federal Reserve”), intended to help the U.S. economy in response to the Coronavirus Disease 2019 pandemic (“COVID-19”). The CARES Act is in addition to a number of programs implemented separately under prior authority by the Federal Reserve in response to COVID-19 that were intended to ensure liquidity and the availability of credit to businesses and households.
This note summarizes programs intended to stabilize the U.S. economy and regulatory relief granted by the Federal Reserve and other U.S. federal banking agencies. This note does not address all of the many substantive provisions of the CARES Act (e.g., tax relief) and is not a comprehensive review of the still developing actions by various U.S. federal and state financial services regulators.
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