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Press Release
December 04, 2009

Federal Reserve adopts final rule establishing a
process to determine the eligibility of credit
rating agencies for the Term Asset-Backed
Securities Loan Facility (TALF)
For immediate release
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The Federal Reserve Board on Friday announced the adoption of a final
rule that would establish a process by which the Federal Reserve Bank
of New York may determine the eligibility of credit rating agencies for the
Term Asset-Backed Securities Loan Facility (TALF).
The rule establishes criteria for determining the eligibility of agencies to
issue credit ratings on asset-backed securities (ABS), other than those
backed by commercial real estate, to be accepted as collateral for the
TALF. The criteria include registration as a nationally recognized
statistical rating organization (NRSRO) with the Securities and
Exchange Commission and experience issuing credit ratings specific to
the types of assets accepted as collateral in the TALF. The final rule is
substantively the same as the proposed rule announced on October 5,
2009.
The rule is intended to promote competition among NRSROs and
ensure appropriate protection against credit risk for the U.S. taxpayer.
The set of NRSROs that become eligible under the new criteria will take
effect with the February 2010 TALF subscription.
The TALF, authorized by the Board on November 24, 2008, helps
market participants meet the credit needs of households and businesses

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by lending to investors in highly rated ABS and commercial mortgagebacked securities.
The Federal Register notice is attached.
Federal Register notice: HTML | 57 KB PDF
TALF Frequently Asked Questions

Last Update: December 04, 2009

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BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM
20th Street and Constitution Avenue N.W., Washington, DC 20551