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Purpose

The purpose of this paper is to examine programs designed to support the commercial paper market during the financial crisis.

Design/methodology/approach

The paper analyzes the participants in the two programs to determine why domestic financial institutions chose one program over the other.

Findings

Domestic financial institutions chose the Temporary Liquidity Guarantee Program over the Commercial Paper Funding Facility (CPFF) while foreign financial institutions chose the CPFF.

Practical implications

The analysis is intended to support future policy debate on how to address a liquidity crisis in the money markets.

Originality/value

The authors are the first paper to examine the participants in these two programs. The value is the policy implications of this study.

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