"Investors - such as hedge funds, private equity funds, and mutual funds - will use the money they get from the Fed to buy newly issued securities backed by a range of consumer and business debt.... securities backed by auto fleet leases, auto dealer loans, business equipment, and loans extended by mortgage servicers to cover payments missed by homeowners will be among the new categories added to the mix"
When's the next bailout, huh?
"New program draws $4.7b in loan requests; Plan aims to aid consumers, small business" by Associated Press | March 20, 2009
WASHINGTON - Investors requested $4.7 billion worth of loans from a new government program that aims to jump-start lending to consumers and small businesses, the Federal Reserve Bank of New York said yesterday.
Ummm, yeah, whatever, lying MSM:
U.S. Banks Driving Credit Crunch ON PURPOSE!!
Bush Administration Created Credit Crunch Crisis
Banks Cut Off CreditInvestors - such as hedge funds, private equity funds, and mutual funds - will use the money they get from the Fed to buy newly issued securities backed by a range of consumer and business debt. Loan requests were due yesterday. The Fed will provide three-year loans to investors on Wednesday.
In the first batch of requests, $2.8 billion is to buy securities backed by credit cards and $1.9 billion is for securities linked to auto loans. No loans were requested for securities collateralized by student loans or loans guaranteed by the Small Business Administration.
I'm sick of the amount of money they throw around while so many suffer.
"This is a good start for a program that we will continue to build on in the future," said William Dudley, the president of the New York Fed. Analysts, however, said the $1 trillion program has gotten off to a slow start. It's been hobbled by rule changes, worries from investors over financial privacy, and fears among would-be participants about being the first to use the facility.
You gotta love those FED LIARS, huh?
In the program's first phase, the Fed will be making up to $200 billion available in loans to investors. Investors will use the money to buy securities backed by autos, student loans, credit cards, and other consumer debt. The Fed hopes this program will make loans to consumers and small businesses more widely available at lower rates.
The Fed will make loans each month through December, when the program is set to expire. The Fed could opt to extend it, though. In the April operation, securities backed by auto fleet leases, auto dealer loans, business equipment, and loans extended by mortgage servicers to cover payments missed by homeowners will be among the new categories added to the mix, the Fed said yesterday.
Also, in a report released yesterday, the Fed said commercial banks borrowed more from the Federal Reserve's emergency lending program over the past week, while investment firms drew less. The report said commercial banks averaged $65.68 billion in daily borrowing over the week ended Wednesday. That was up from $63.49 billion in average daily borrowing logged over the week ended March 11.
Investment firms drew $19.68 billion over the past week from the Fed program. That was down from an average of $19.73 billion the previous week.
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I think I've read the word "billion" too much because I'm feeling nauseous.
