Category — Term Asset-Backed Securities Loan Facility (TALF)

In addition to the previous announcement that commercial mortgage-backed securities (CMBS) issued on or after January 1, 2009 are eligible collateral under the TALF, the Federal Reserve has announced that certain high-quality commercial mortgage-backed securities issued before January 1, 2009 (legacy CMBS) will become eligible collateral. [Read more →]

Today, May 20, 2009, President Obama signed the Fraud Enforcement and Recovery Act, authorizing more than $280 million for federal fraud enforcement and specifically expanding the reach of federal fraud statutes.  With the powers now being aggressively exercised by the Special Inspector General for the Toxic Asset Recovery Program, and the mandate issued to the inspectors general of all funding agencies under the American Recovery and Reinvestment Act,  criminal, civil and administrative scrutiny of the use and accounting for all federal funding and private lending practices will be intense.  [Read more →]

On May 1, the Federal Reserve Board announced the expansion of the TALF program to include commercial mortgage-backed securities (CMBS) and securities backed by insurance premium finance as eligible collateral, with the first subscription date scheduled for late June.  In addition to the Public-Private Investment Program, the expansion is designed to address potential defaults on commercial properties while supporting the issuance of new loans.  [Read more →]

The New York Fed has announced that the next TALF subscription date will be May 5, with loan settlement dates on May 12.  As always, interested borrowers may obtain a pre-certification review by the New York Fed in advance of the next subscription date by having their primary dealer submit their name and details of the loan desired. [Read more →]

On November 24, 2008, the Federal Reserve Board announced the Term Asset-Backed Securities Loan Facility (TALF), a Federal Reserve credit facility authorized under section 13(3) of the Federal Reserve Act, which is designed to encourage lending to consumers and small businesses by providing non-recourse loans to participants who currently own certain credit card, student, auto and similar asset-backed securities (ABS) to issue new ABS.  The goal is to reinvigorate the ABS market, which is expected to stimulate lending to small businesses and consumers. [Read more →]

On March 23, 2009, the Treasury – in conjunction with the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve – announced the initial details of its Public-Private Investment Program (PPIP) which is designed to (i) remove toxic real estate loans and securities from the balance sheets of U.S. depositary institutions, which include banks and thrifts (Participant Banks), (ii) rejuvenate real estate credit markets and (iii) restart the real estate loan securitization market. PPIP is divided into two programs, (a) the Legacy Loans Program dealing with residential and commercial real estate loans held by Participant Banks and (b) the Legacy Securities Program dealing with commercial mortgage backed securities (CMBS) and residential mortgage backed securities (RMBS). [Read more →]

On March 23, 2009, the Treasury – in conjunction with the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve – announced the initial details of its Public-Private Investment Program (PPIP) which is designed to (i) remove toxic real estate loans and securities from the balance sheets of U.S. depositary institutions, both large and small, which are insured by the FDIC (Participant Banks), (ii) rejuvenate real estate credit markets and (iii) restart the real estate loan securitization market. PPIP is divided into two programs, (a) the Legacy Loans Program dealing with residential and commercial real estate loans held by Participant Banks, and (b) the Legacy Securities Program dealing with residential and commercial mortgage backed securities which were originally issued prior to 2009 and are presently held by Participant Banks. [Read more →]

On March 23, 2009, Treasury announced details of its two-part Public-Private Partnership Investment Program aimed at relieving financial institutions of toxic loans and securities.  The program will use the collective resources of the Treasury, the Federal Reserve, and the FDIC, together with private funding and management, to remove from bank balance sheets whole loans and pre-2009 residential and commercial mortgage-backed securities, collectively referred to as Legacy Assets.  This Public-Private Partnership Investment Program will be funded with $75 – $100 billion in TARP capital in addition to capital from private investors to create $500 billion to $1 trillion in Legacy Asset Purchases.  [Read more →]

Treasury Secretary Timothy Geithner announced on February 10, 2009 the Financial Stability Plan.*  This Plan includes provisions to enhance bank capitalization, supervision, and public disclosure; a public-private bad asset investment and disposition program; initiatives for consumer and business lending; and a program for foreclosure avoidance.  Many of these programs will be funded through additional TARP and related bailout funding.  Significant details regarding the Financial Stability Plan are included in a Fact Sheet also released today by Treasury.  [Read more →]