Federal Reserve's TALF to be Launched This Month

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Published: Fri, 06 Feb 2009 20:16:19 +0100

Federal Reserve's TALF to be Launched This Month

The program is designed to aid shareholders in stocks backed by auto and credit card companies, as well as student loans.

The Fed said today the program is limited to U.S. companies and U.S.-based international companies that aren't subject to a foreign government.

Eligible applicants for loans include those holding stock backed by automotive companies, consumer and corporate credit cards, and U.S.-backed student loans.

The minimum amount applicants can borrow is $10 million, while there is no maximum. The total amount available in the program remains $200 billion.

Borrowers will have the choice to have fixed or floating interest rates, and the loans have a three-year maturity.

By Megan Ainscow, mainscow@economicnews.ca, edited by Stephen Huebl, shuebl@economicnews.ca

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