“More Alphabet Soup: Federal Reserve Creates $200 Billion Term Asset-Backed Securities Loan Facility (TALF)”

Get ready for a new acronym to join the alphabet soup of programs announced recently by the Government to help restore the nation’s economy. On Tuesday, November 25, the Federal Reserve Board and the U.S. Department of Treasury announced the creation of the Term Asset-Backed Securities Lending Facility (TALF). The new facility, which is expected to be effective in February 2009, is designed to encourage lending to consumers and small businesses. Available credit for both of these segments has been reduced drastically over the past few months. This Stroock Special Bulletin provides an overview of some of the key provisions of TALF.