It has been 15 weeks since we released The Bailout Revisited, our previous report on the efforts of the USGovernment to revive our financial markets, colloquially known as the “bailout”. There have been numerous developments since, including the inauguration of a new President, a reshuffling of the team of officials who counsel the President and implement the bailout, the passage of additional legislation, several new initiatives and a concerted effort to re-brand the bailout and escape the negative public reaction to the efforts of the Bush Administration.

The purpose of this report is to summarize the new developments in the evolving Federal response to the credit crisis. The focus of this report will be initiatives related to the financial system, rather than broader efforts (e.g., the “Stimulus” legislation) to revive the economy. We will provide an overview of the government’s recent actions, and information concerning ongoing and proposed programs. This information is designed to be helpful in seeking to assess the risks and opportunities resulting from the federal government’s unprecedented activities in the financial system.