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TALF Is Reworked After Investors Balk

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Term Asset Backed Loan Facility of $1 trillion is aimed at bringing new life to the market for asset backed securities that effectively subsidizes loans to consumers and businesses to buy cars, pay for tution, buy farm equipment or use credit cards. Through the program an investment fund can put down $5 to $14 for every $100 it plans to spend and borrow the remaining $95 to $86 cheaply from the Fed. The investment fund agrees to buy highly rated securities issued by lenders that the Fed deems eligible collateral for the loans. About $10 billion in such loans could be made available to auto lenders, Ford Motor Credit and World Omni Financial Corporation. Modifications to the TALF program are being proposed by the banks, but are being reviewed for risk by the Fed and Treasury.

Term Asset Backed Loan Facility (TALF) of $1 trillion in the global financial crisis of 2008

03/13/2009

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TALF Is Reworked After Investors Balk

Wall Street Journal 03/13/2009


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