Tuesday, November 25, 2008

Bailout Pledges More than $8 Trillion

Hot off the press, Part I. Term Asset-Backed Securities Loan Facility at $200B. Details per the WSJ:

Under the TALF, the Federal Reserve Bank of New York (FRBNY) will lend up to $200 billion on a non-recourse basis to holders of certain AAA-rated ABS backed by newly and recently originated consumer and small business loans.
Part II. The Fed to purchase up to $600 Billion in Mortgage Backed Securities (per the AP).

The Fed says it will purchase up to $100 billion in direct obligations from mortgage giants Fannie Mae and Freddie Mac as well as the Federal Home Loan Banks. It also will purchase another $500 billion in mortgage-backed securities, pools of mortgages that are bundled together and sold to investors.


This pushes the bailout "pledged" to date to over $8 Trillion. I understand it is NOT likely that all of these pledges made to date will be spent, but who thinks this is the last of them? Not me...

Source: Mish