3/20/09

TALF II




If more than $20 billion in assets are purchased


the FRBNY will lend additional funds to finance such additional purchases


 


The FRBNY’s loan …will be senior to the TARP subordinated loan


and secured by all the assets


 


All cash flows …will be used first to repay principal and interest


on the FRBNY senior loan until the loan is repaid in full


 


Next, cash flows from assets will be used to repay principal and interest


on the TARP subordinated loan


 


Term Asset-Backed Securities Loan Facility (TALF)


 Terms and Conditions


 


If the US Treasury’s Troubled Assets Relief Program (TARP)


purchases the first $20 billion of assets for TALF


why is the Federal Reserve Bank of New York


a senior creditor to US taxpayers?


 


If the Federal Reserve hopes to lend $1.25 trillion in 2009


where is the money coming from?


Is it progress


if a cannibal uses a knife and fork?


 


Stanislaw Lec



 

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