Friday, April 10, 2009

Update: Slow Start for TALF

The Term Asset-Backed Securities Loan Facility ("TALF") program established by the Federal Reserve Bank of New York ("Federal Reserve") appears to be off to a slow start. According to statements released by the Federal Reserve on March 19, 2009 and April 7, 2009, prospective borrowers requested a total of only $4.7 billion and $1.7 billion in loans during the first and second operations of the TALF, respectively.

Results for March 17-19 Facility
Results for April 7 Facility

The amount of loans requested during the first two rounds of funding represent only a small fraction of the $200 billion in total loan capacity that the Federal Reserve has made available under the TALF. In February, the Federal Reserve announced that it was prepared to increase the size of the TALF to as much as $1 trillion.