In 2008, the crisis intensified with the near collapse of Bear Stearns in March and the bankruptcy of Lehman Brothers Holdings in September; a full-scale financial panic ensued across much of the global financial system. 5  In our role as lender of last resort, we worked closely with the Treasury Department and the Federal Deposit Insurance Corporation (FDIC).
For example, to stem the run on money market funds, the Treasury provided a temporary guarantee and the Fed created a backstop liquidity program. In addition, the FDIC established the Temporary Liquidity Guarantee Program to guarantee certain unsecured liabilities of depository institutions and some bank holding companies.