Over the weeks since we released our previous report, The Shape of the Bailout, on October 29, 2008, there have been numerous developments in the implementation of the EESA and the related initiatives of the Federal Reserve, the FDIC and the Treasury. In addition, the “Big 3” U.S. automobile makers have requested loans from Congress, and the incoming Obama Administration has begun to outline its economic program. The purpose of this report is to summarize recent developments in the evolving Federal response to the credit crisis and the now-official recession it caused. 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.

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