From Reuters:
Fed, Treasury extend TALF to mid-2010 for CMBS
Mon Aug 17, 2009 11:23am EST
By Mark Felsenthal and Al Yoon
WASHINGTON/NEW YORK (Reuters) The U.S. Federal Reserve said on Monday it will extend to mid-2010 an emergency program aimed at boosting lending in the ailing commercial real estate market.
In a joint announcement with the U.S. Treasury Department, the Fed said it would extend its Term Asset-Backed Securities Loan Facility (TALF) to June 30 for newly issued commercial mortgage-backed securities, a program that has yet to get off the ground.
The Fed and the Treasury also extended through March 31 its TALF for newly issued securities backed by auto, credit card, student and small business loans, and existing CMBS.
Analysts said the move is most important to the commercial real estate sector being buffeted by a lack of credit and as the recession curbs revenue from office, retail and apartment buildings. The industry has been often cited by Fed officials in the past month as a particular danger to a U.S. economic recovery if borrowers with maturing loans find no other outlet than default.
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