Fed Eliminates Compensation Limits for TALF Program

Source: Bloomberg

March 3 (Bloomberg) -- The Federal Reserve and U.S. Treasury eliminated executive-compensation limits for companies that bundle loans accepted under a new $1 trillion program, indicating the rules may have hampered efforts to start the plan.

The rules won’t apply to the Term Asset-Backed Securities Loan Facility out of “desire to encourage market participants to stimulate credit formation and utilize the facility,” the New York Fed said in a document on its Web site today. The government separately said it will expand the TALF to support vehicle-fleet leases and loans for business, construction and farm equipment.

The change suggests the government doesn’t intend to apply compensation limits beyond firms that receive direct investments from the Treasury’s $700 billion bailout fund. Officials have yet to announce whether such requirements will be imposed on firms participating in a separate effort to remove as much as $1 trillion of distressed assets from banks’ balance sheets.
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The TALF, aimed at propping up the market for auto and business loans, will start disbursing funds March 25 and will probably accept securities backed by vehicle-fleet and equipment leases starting next month, the Fed and Treasury said in a statement today.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=a.MKNc.ZKf48&refer=home

:mad:

:mad:
rocktivity

Is the Fed going to loan us the money to buy them?

or isn't he used to being honest?

Give us money or we will sabotage your efforts.

The guys at AIG who sold fraudulent CDS, the guys at Goldman Sach's who were selling MBS's in one room, and shorting them in the other.

The whole system is corrupt. The bankers own our government, and our government serves the banks.

Everything they are doing now is an attempt to recreate the housing and credit bubble, not to actually fix the problem.