TIMELINE: Fed actions to boost liquidity

WASHINGTON (Reuters) - The U.S. Federal Reserve on Wednesday announced coordinated rate cuts with other central banks in Europe to stem fallout from the financial crisis. The move followed the creation of a commercial paper funding facility on Tuesday to keep credit markets working.

The actions were the latest in a series of extraordinary steps by the Fed dating to August 2007 aimed at keeping strained credit markets from freezing up entirely.

Following is a chronology of the Fed's actions:

August 10, 2007: Fed notes banks are experiencing unusual funding needs and says it will provide funds as needed.

August 17: Fed cuts discount rate; says it will act as needed to safeguard economy from financial market disruptions.

November 26: Fed promises more than the usual year-end liquidity and says it will lift limits on how much can be lent to any one bank.

December 12: Fed establishes Term Auction Facility (TAF) to provide funds over longer period to a wider range of banks. It also sets up foreign exchange swap lines with the European Central Bank and Swiss National Bank for up to six months, providing up to $20 billion for the ECB and $4 billion for the SNB.

January 3, 2008: Fed raises TAF auction amounts to $30 billion from $20 billion for each of the two auctions in January.

February 1: Fed says to continue TAF auctions in February.

February 29: Fed sets two TAF auctions of $30 billion each in March and says intends to conduct auctions for as long as necessary.

March 7: Fed increases size of TAF auctions to $50 billion and starts a series of 28-day repurchase transactions with primary dealers expected to total another $100 billion.

March 11: Fed says to accept broader range of collateral in new program for primary dealers, the Term Securities Lending Facility (TSLF), to lend up to $200 billion for 28 days. It also increases swap lines with the ECB and the SNB to up to $30 billion and $6 billion, respectively; extends them through September 30.

March 14: Fed says authorized JPMorgan Chase to borrow at discount window for Bear Stearns.

March 16: Fed cuts discount rate and announces new program to provide credit to primary dealers, the Primary Dealer Credit Facility (PDCF). PDCF to extend credit against broad range of investment-grade debt securities. It also increases maximum term of discount rate loans to 90 days from 30 days. Actions are taken in concert with decision to approve special financing to facilitate the purchase of Bear Stearns by JPMorgan Chase.

March 24: Fed details role in amended JPMorgan planned purchase of Bear Stearns. It says it will assume control of a portfolio of Bear Stearns assets valued at $30 billion. Any profit will accrue to Fed; JPMorgan will bear first $1 billion of any losses.

April 9: Fed says considering plan to have Treasury borrow in excess of its needs and deposit surplus at Fed. It says also considering whether to issue debt under its own name and whether to seek authority to immediately begin paying interest on commercial bank reserves.  Continued...