Federal Notices
September 22, 2008
HP-1152
Statement by G-7 Finance Ministers and Central Bank Governors on Global Financial Market Turmoil
Washington, DC-- The Group of Seven Finance Ministers and Central Bank Governors released the following statement today:
The G-7 held a conference call today to discuss global financial markets. We reaffirm our strong and shared commitment to protect the integrity of the international financial system and facilitate liquid, smooth functioning markets, which are essential for supporting the health of the world economy.
We strongly welcome the extraordinary actions taken by the United States to enhance the stability of financial markets and address credit concerns, especially through its plan to implement a program to remove illiquid assets that are destabilizing financial institutions. We also strongly welcome the measures taken by other G-7 countries. Major central banks have been coordinating to address liquidity pressures in funding markets, which has been critical in addressing disruptions in global financial markets. Several regulators have taken decisive actions to combat market manipulation and stabilize financial markets, including a temporary ban on short selling of financial stocks.
We recognize the importance of making regulation more effective and bringing investors back into a liquid and stable marketplace. We remain committed to full and rapid implementation of the Financial Stability Forum (FSF) recommendations to enhance the resilience of the global financial system for the longer term. We look forward to the FSF report this fall on progress made in strengthening prudential supervision and regulation, improving firms' risk management practices, enhancing disclosure and transparency, and strengthening accounting frameworks.
We pledge to enhance international cooperation to address the ongoing challenges in the global economy and world markets and maintain heightened close cooperation between Finance Ministries, Central Banks and regulators. We are ready to take whatever actions may be necessary, individually and collectively, to ensure the stability of the international financial system.
September 21, 2008
hp1151
Treasury Provides Further Clarity For Guaranty Program for Money Market Funds
Washington – The U.S. Treasury Department is continuing to develop the specific details surrounding the temporary guaranty program for money market funds that was announced on September 19, 2008.
While these details are being finalized, Treasury is making the following clarifications:
1. All money market mutual funds that are regulated under Rule 2a-7 of the Investment Company Act of 1940 and are publicly offered and registered with the Securities and Exchange Commission will be eligible to participate in the program.
2. Eligible funds include both taxable and tax-exempt money market funds. The Treasury and the IRS intend to issue guidance that will confirm that participation in the temporary guaranty program will not be treated as a federal guaranty that jeopardizes the tax-exempt treatment of payments by tax-exempt money market funds.
3. The temporary guaranty program will be designed to provide coverage to shareholders for amounts held by them in such funds as of the close of business on September 19, 2008.
4. Further details on other aspects of the temporary guaranty program and the required documentation for funds to participate will be provided in the coming days.
August 28, 2008
HP-1121
US Treasury Awards $54.2 Million to Benefit
Organizations
Serving Economically Distressed Communities Nationwide
Port Angeles, Wash. – Director Donna J. Gambrell, of the U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund, visited Port Angeles, Wash. today to announce awards totaling $54,181,733 for 89 organizations serving economically distressed communities across the nation. The awards are being made through the fiscal year 2008 round of the CDFI Program. The award recipient organizations are headquartered in 38 states and the District of Columbia.
"Port Angeles is a long way from the nation's capital, but we selected this location to make our FY 2008 national award announcement to highlight how CDFIs are successful at implementing innovative approaches to rural economic development," said CDFI Fund Director Gambrell. "By embracing new traditions of sustainability and economic diversification, CDFIs are helping to map the future of rural revitalization and growth."
Treasury held the national award announcement at the Incubator at Lincoln Center in Port Angeles to highlight the three Pacific Northwest-based award recipients: Shorebank Enterprise Cascadia (Ilwaco, WA); Washington Community Alliance for Self-Help (Seattle, WA); and Innovative Housing, Inc. (Portland, OR). In addition, the announcement focuses on the work of many CDFIs in support of the nation's rural communities, bringing residents greater access to affordable credit, capital and financial services. Many CDFIs focus on a "triple bottom line" where the success of their investments is measured not just by financial return but also through community impacts and environmental benefits in the communities they serve.
The awardees were selected after a competitive review of 225 applications received by the CDFI Fund from organizations across the nation that requested, in total, more than $205 million in funding under the FY 2008 round of the CDFI Program.
Since inception, the CDFI Fund has made almost 1,500 awards for over $625 million through the CDFI Program.
Background
Through the CDFI Program, the CDFI Fund invests in and builds the capacity of existing private, for-profit and nonprofit community-based lending organizations known as Community Development Financial Institutions (CDFIs) that serve rural and urban low-income people and communities across the nation that lack adequate access to affordable financial products and services.
The CDFI Program consists of two types of monetary awards: Financial Assistance and Technical Assistance. The program is funded through an annual appropriation from the United States Congress. The CDFI Fund receives applications on an annual basis and awards funds through a competitive process. Since inception, the CDFI Fund has awarded over $625 million through the CDFI Program. In FY 2008, 66 CDFIs received $52 million in Financial Assistance or a combination of Financial Assistance and Technical Assistance awards and 23 organizations received $2 million in only Technical Assistance awards.
Financial Assistance
Financial Assistance awards allow the CDFI Fund to achieve economic and community development impact by investing in CDFIs that demonstrate the financial and managerial capacity to provide affordable financial products and services to low-income communities and populations. Financial Assistance awards are made only to certified CDFIs (meaning, they have been certified by the CDFI Fund prior to applying for funds), which includes both mature CDFIs and small and emerging CDFIs.
Financial Assistance awards are made in the form of equity investments, loans, deposits, or grants, depending on the form of the applicant's matching funds. Financial Assistance awards must be matched with non-federal funds of the same type, on a dollar-for-dollar basis. Through the match requirement, CDFIs leverage private capital to respond to demand for affordable financial products and services in economically distressed markets and by low-income people. CDFIs respond to this demand by providing loans, investments, training, technical assistance, and basic financial services such as checking and savings accounts.
Technical Assistance
Through Technical Assistance awards, in the form of grants, the CDFI Fund assists start-up and existing CDFIs to build their organizational capacity to serve their target markets. Both certified and non-certified CDFIs are eligible to apply for Technical Assistance awards; non-certified organizations must meet CDFI certification requirements within three years.
Technical Assistance awards can be used for multiple purposes, including purchasing equipment, materials, supplies, and consulting and contracting services. A Technical Assistance award can also be used to pay for certain personnel salaries/benefits and to train staff or board members. Established CDFIs often use Technical Assistance awards to build their capacity to provide new products, serve current markets in new ways, or enhance the efficiency of their operations. Newer CDFIs often use their Technical Assistance awards to undertake market studies, develop underwriting policies, and purchase computer equipment.
For more information on the CDFI Program, please visit www.cdfifund.gov.
