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Last updated on April 17, 2014 at 1:21 EDT

Government extends TALF program

August 17, 2009

The U.S. Treasury and Federal Reserve announced Monday they would extend a consumer lending program for six months.

The Term Asset-Backed Securities Loan Facility was set up to purchase securities backed by consumer automobile and credit card loans. A commercial loan facility was also set up to buy loans backed by commercial real estate.

In a joint statement, the Treasury and Fed said conditions in financial markets have improved considerably in recent months, but markets for asset-backed securities are still impaired.”

The agencies, however, do not anticipate any further additions to the types of collateral that are eligible for the facility, the statement said, signaling a possible end to the program after the extension.

The agencies said they would continue to support commercial real estate borrowing through the end of June 2010 because commercial deals can take a significant amount of time to arrange. The target date to wind down the asset-backed securities program was set at the end of March 2010.


Source: upi