TALF: lending program targets consumers, business

[Damocles]

TALF program finally going into operation on March 25, Fed says

By Rex Nutting, MarketWatch
Last update: 9:32 a.m. EST March 3, 2009

WASHINGTON (MarketWatch) -- A new lending program from the Federal Reserve and the Treasury Department could generate up to $1 trillion in loans to small businesses and consumers, the government announced Tuesday.

The Term Asset-Backed Securities Loan Facility, or TALF, will provide its first loans March 25, the government said. The Fed announced the program in November, then unveiled an expansion last month, but the highly anticipated program was delayed.

Investors who want to participate will apply to the Fed on March 17.

The New York Fed will lend up to $200 billion to owners of high-rated asset-backed securities, such as consumer loans, auto loans, student loans, credit cards or small-business loans. Investors holding these loans will be able to use them as collateral to obtain fresh funding from the government. The Fed's program is designed to make a profit in the long run through interest and fees.

More at link...

http://www.marketwatch.com/News/Story/Story.aspx?guid={2C3BCFDD-F2E4-446B-BDD2-FEF9BD5BDF8A}

 

[Bonestorm]

TALF program finally going into operation on March 25, Fed says

By Rex Nutting, MarketWatch
Last update: 9:32 a.m. EST March 3, 2009

WASHINGTON (MarketWatch) -- A new lending program from the Federal Reserve and the Treasury Department could generate up to $1 trillion in loans to small businesses and consumers, the government announced Tuesday.

The Term Asset-Backed Securities Loan Facility, or TALF, will provide its first loans March 25, the government said. The Fed announced the program in November, then unveiled an expansion last month, but the highly anticipated program was delayed.

Investors who want to participate will apply to the Fed on March 17.

The New York Fed will lend up to $200 billion to owners of high-rated asset-backed securities, such as consumer loans, auto loans, student loans, credit cards or small-business loans. Investors holding these loans will be able to use them as collateral to obtain fresh funding from the government. The Fed's program is designed to make a profit in the long run through interest and fees.

More at link...

This must be part of the war on entrepreneurs and small businesses that Larry Kudlow was talking about.

 

[SmarterthanYou]

yippeeee, lets put debt riddled consumers in to further debt by making credit easier to obtain.

 

[uscitizen]

This is to loan money to investors holding securely backed loans?

How does this help small business or individuals?

 

[Bonestorm]

Having read more about this plan, it's another bad one.

I think it is basically safe to assume that any idea floated by the Treasury or the FED at this point is a bad one until proven otherwise.