Treasury to Sell Bills to Bolster Fed Balance Sheet (Update1) By John Brinsley and Rebecca Christie Sept. 17 (Bloomberg) -- The U.S. Treasury said it will sell bills to allow the Federal Reserve to expand its balance sheet, a day after the government agreed to take over American International Group Inc. ``The Treasury Department announced today the initiation of a temporary Supplementary Financing Program at the request of the Federal Reserve,'' the department said in a statement today. ``The program will consist of a series of Treasury bills, apart from Treasury's current borrowing program.'' Yesterday the Fed announced an $85 billion loan to AIG, in exchange for a 79.9 percent government stake in the largest U.S. insurer. The Fed also has set up several other emergency lending programs to provide Wall Street firms with ready access to funding. The new bill program ``will provide cash for use in the Federal Reserve initiatives,'' the Treasury said. The Treasury said it will sell the new bills using its existing auction procedures, giving ``as much advance notification as possible.'' The bills will not have a uniform fixed term, giving the Treasury the same duration flexibility that it has with cash-management bills. http://www.bloomberg.com/apps/news?pid=20601087&sid=aE2E0CFl8PEU&refer=home
ah thats where paulson has been. in the photocopy room knocking up some new colourful treasury bills. order up some more paper and ink. they are gonna need it.