Talf is dead ! Long live Talf !
As of Wednesday, the Federal Reserve’s main programme to prop up consumer credit markets during the financial crisis – the Term Asset-Backed Securities Loan Facility - no longer exists.
There was relatively little of it left by the end of June, since many of its components, including the programmes designed to boost credit card loans, auto loans, small business loans and student loans, had already expired at the end of March. But one of its elements, the commercial real estate portion, had been kept alive until the end of June in order to further support that troubled sector.
Talf seems to have served its purpose well, at least according to an internal Treasury email (the Fed did not put out a release to mark the occasion, but Brian Sack, executive vice-president of the NY Fed, did give this speech on the topic on June 9). Read more