Federal Reserve Lending Programs: Credit Markets Served by the Programs Have Stabilized, but Vulnerabilities Remain, Report to Congressional Committees [open pdf - 2MB]
From the Highlights: "On July 30, 2021, the last of the 13 Federal Reserve lending facilities stopped purchasing assets or extending credit. However, some of these facilities, including facilities that were supported through Department of the Treasury funding appropriated under section 4003(b)(4) of the CARES [Coronavirus Aid, Relief, and Economic Security] Act, continue to hold outstanding assets and loans. The Federal Reserve will continue to monitor and manage the facilities until these assets and loans are no longer outstanding. The CARES Act included a provision for GAO [Government Accountability Office] to periodically report on section 4003 loans, loan guarantees, and investments. This report examines the Federal Reserve's continued oversight and monitoring of the CARES Act facilities; what available evidence suggests about the facilities' effects on corporate credit markets, states and municipalities, and small businesses; and the characteristics of Main Street Lending Program participants, among other things. GAO reviewed applicable laws and agency and Federal Reserve Bank documentation; analyzed agency and other data on the facilities and credit markets; interviewed Federal Reserve and Treasury officials and representatives of state and local governments; and conducted a generalizable survey of for-profit Main Street borrowers. [...] The Federal Reserve oversight reviews completed in December 2020 identified opportunities to enhance certain areas, including internal process and controls. These reviews also identified areas for continued monitoring, such as cybersecurity and conflicts of interest. GAO found that Federal Reserve's plans for ongoing monitoring of the facilities align with federal internal control standards for ongoing monitoring of an entity's internal control system."
Government Accountability Office: https://www.gao.gov/