TALF Off To So-So Start

By: Guy Campanile
Topics: Economic Stimulus

The Federal Reserve program to lend investors $200 billion to buy student loan, credit card, small business and auto loan debt is off to a so-so start. The Fed is counting on TALF (Term Asset-Backed Securities Loan Facility) to help get the battered credit markets out of the intensive care unit.

(IStockPhoto)

The New York Federal Reserve received $4.7 billion in loan requests for this first round of TALF (March 14-19). $2.8 billion of that was in credit card debt. The rest was in auto loans.

"This is a good start for a program that we will continue to build on in the future," said Federal Reserve Bank of New York President William C. Dudley in a press release. "Our goal is to get the securitization market working again."

But a number of observers had hoped to see a stronger debut. You have to wonder if TALF's underwhelming debut has something to do with the public flogging AIG, Merrill Lynch and others have endured in recent weeks. Hedge fund managers we've spoken to have expressed growing unease about doing business with the government, especially if exposes them to public scrutiny of their business practices and compensation regimes.

The next round of TALF is scheduled for the second week of April.

3 Comments Have Your Say
Email Story Send to a Friend
Share This Tell Your Friends
Tweet This Tweet This
More Share It

Add a Comment


by final4ncaa March 23, 2009 1:14 AM EDT: CBS, could you look closer at NISSAN MOTOR ACCEPTANCE CORP (NMAC)? They were the first in line to get TALF money, a little over a BILLION $$$$! This money if for auto loans AND floor plan financing for Nissan dealers- yet I am seeing in the news that NMAC is closing down Nissan dealers by taking away the floor plan financing!
I have heard that NMAC has closed several Nissan dealers in the West Coast by taking away their cars. I can't believe that a financing arm of a Manufacturer can shut down a Nissan dealer AFTER getting money from the US Taxpayers. What did they do with the Billion dollars that they got? Here we go again, If we don't follow to what happens to the money, how can we know if it is being used for what it is intended? If NMAC is a financing arm, they should be in front of Congress answering questions about where the Billion dollars went- just like when the Bank CEO's went before Congress. One Billion of TALF money is a relatively small amount in comparison to the BIG BANKS, but let us not let it slip away without any kind of accountability! CBS, please call NMAC and get some answers! We need Nissan Dealers to stay in business>to sell cars>to employ people>etc. etc.; Reply to this comment


by gne1963 March 21, 2009 10:30 AM EDT: I would have to disagree with the headline and agree with Fed President Dudley. The program is off to a strong start and that is great news for the economy. Moving only $5B of debt off the books could actually signal that the consumer debt segment is not as toxic as thought. Now enter the big bank fixes that are likely to be detailed this week...

<a href="http://mast-economy.blogspot.com/2009/03/wessel-on-fix.html">Big Bank Fix</a>

and we are well on our way to returning these large banks to some amount of stability.; Reply to this comment


by Miltonell March 20, 2009 3:39 PM EDT: IF THIS IS YET ANOTHER DRAW ON TAX PAYERS, WE SHOULD HAVE A VOICE IN WHAT ACTION THAT IS TO BE TAKEN. We should be helping each other NOT over Size corporations/establishments that can not relate to the common working family/individual(s).

We as a Nation started falling apart when we started allowing over size corporations/ establishments to take control of how this Nation is ran / should be managed.

We all know and have known it for sometime that oversize corporations and establishments such as AIG and the VA (Veterans Administrations) is really running this country and not the so called PUBLIC SERVANT that we elected to do the JOB. Thus if they are not doing the JOB, they do not need to be in OFFICE.

It is a PUBLIC SERVICE OFFICE, NOT!!! A SELF SERVING ONE!!!!
AND FOR FAR TOO LONG THESE OFFICESES HAS BEEN USED AS A SELF SERVING, SELF FULLING AND PERSONAL GAIN.

TAKE A LOOK AT OUR VETERANS?.WALTER REED, MENTAL CARE OF OUR VETERANS?THE REFUSAL AND DENIALS OF LAGETIMENT CLAIMS?THE PROCESSING TIME OF SUCH CLAIMS.

Its does not start and stop with AIG, WALTER REED or the VA?.Walter Reed was the first glimpse into one of the many things that is WRONG with our Nation ?.. that was played down, so NOW, we have AIG, if it is played down?.you can be sure we will be hit again with a much more POWERFUL message.

I believe our current Presidential Administration is making a move in the right direction in address and correcting many of these wrongs.; Reply to this comment