TALF

Eligible collateral will include US dollar-denominated cash ABS

that have a long-term credit rating

in the highest investment-grade rating category

(for example, AAA)

from two or more major nationally recognized

statistical rating organizations (NRSROs)

and do not have a long-term credit rating

of below the highest investment-grade rating category

from a major NRSRO

 

Term Asset-Backed Securities Loan Facility (TALF)

 Terms and Conditions

If many who shouldn’t have

believed sub-prime debt could be repackaged

with similar credit risk characteristics as AAA US Treasuries

 

how can eligible collateral

for the US Treasury and Federal Reserve’s

Term Asset-Backed Securities Loan Facility (TALF)

include AAA rated auto, student, credit card, equipment, floorplan

or small business loans

 

if most auto, student, credit card, equipment, floorplan

and small business loans

are riskier than AAA rated Treasury debt?

TALF III

Eligible collateral will include U.S. dollar-denominated cash ABS

that have a long-term credit rating

in the highest investment-grade rating category

(for example, AAA)

from two or more major nationally recognized

statistical rating organizations (NRSROs)

and do not have a long-term credit rating

of below the highest investment-grade rating category

from a major NRSRO

 

Term Asset-Backed Securities Loan Facility (TALF)

 Terms and Conditions

Should economic plans

designed to fix large, complex predicaments

rely on the same monetary authorities that enabled

and ratings agencies who profited

from the creation of the initial problems?

TALF III

Eligible collateral will include U.S. dollar-denominated cash ABS

that have a long-term credit rating

in the highest investment-grade rating category

(for example, AAA)

from two or more major nationally recognized

statistical rating organizations (NRSROs)

and do not have a long-term credit rating

of below the highest investment-grade rating category

from a major NRSRO

 

Term Asset-Backed Securities Loan Facility (TALF)

 Terms and Conditions

Should economic plans

designed to fix large, complex predicaments

rely on the same monetary authorities that enabled

and ratings agencies who profited

from the creation of the initial problems?

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

 

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