Full text of Board of Governors of the Federal Reserve System : Documents Relating to the Financial Crisis of 2007-2009 : Federal Reserve is Prepared to Expand Term Asset-Backed Securities Loan Facility (TALF), February 10, 2009

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Press Release

Release Date: February 10, 2009
For release at 11:00 a.m. EST
The Federal Reserve Board on Tuesday announced that it is prepared to undertake a substantial
expansion of the Term Asset­Backed Securities Loan Facility (TALF). The expansion could
increase the size of the TALF to as much as $1 trillion and could broaden the eligible collateral to
encompass other types of newly issued AAA­rated asset­backed securities, such as commercial
mortgage­backed securities, private­label residential mortgage­backed securities, and other asset­
backed securities. An expansion of the TALF would be supported by the provision by the Treasury
of additional funds from the Troubled Asset Relief Program.
The Board's objective in expanding the TALF would be to provide additional assistance to financial
markets and institutions in meeting the credit needs of households and businesses and thus to
support overall economic growth in the current period of severe financial strains. Decisions
concerning the expansion of the TALF, which will be made in consultation with the Treasury
Department, will draw on initial experience in administering the program and the Board's
assessment of the likely effectiveness of possible enhancements to the program in advancing its
broad economic goals.
Under the current specification of the TALF, the Federal Reserve Bank of New York will lend to
eligible owners of certain AAA­rated asset­backed securities (ABS). The Federal Reserve had
previously announced that it would accept AAA­rated asset­backed securities backed by newly and
recently originated auto loans, credit card loans, student loans, and SBA­guaranteed small business
loans as collateral for TALF loans. The date that the TALF will commence operations will be
announced later this month.
Related Press Releases
Federal Reserve announces the creation of the Term Asset­Backed Securities Loan Facility (TALF)
November 25, 2008
Federal Reserve releases revised information detailing operational aspects of Term Asset­Backed
Securities Loan Facility (TALF)
December 19, 2008
Federal Reserve releases additional terms and conditions of the Term Asset­Backed Securities Loan
Facility (TALF)
February 6, 2009
Other Related Information
Remarks by Treasury Secretary Geithner on the introduction of the Financial Stability Plan
February 10, 2009
Fact Sheet­­Financial Stability Plan (72 KB PDF)

February 10, 2009