On December 28th, the Federal Reserve Board published proposed amendments to Regulation D (Reserve Requirements of Depository Institutions) that would enable the establishment of a term deposit facility. Under the proposal, the Federal Reserve Banks would offer interest-bearing term deposits to eligible institutions through an auction mechanism. Term deposits could not be withdrawn prior to maturity, would not satisfy required reserve balances or contractual clearing balances, and would not be available to clear payments or cover daylight or overnight overdrafts. However, a bank could use a term deposit to collateralize discount window advances. Comments should be submitted on or before February 1, 2010. Federal Reserve Board Press Release.