hedge fund bailout! (student loan, transaction, refund, credit)
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Hedge funds gain access to $200bn Fed aid
By Krishna Guha in Washington
Published: December 20 2008 05:01 | Last updated: December 20 2008 05:01
Hedge funds will be allowed to borrow from the Federal Reserve for the first time under a landmark $200bn programme intended to support consumer credit.
The Fed said on Friday it would offer low-cost three-year funding to any US company investing in securitised consumer loans under the Term Asset-backed Securities Loan Facility (TALF). This includes hedge funds, which have never been able to borrow from the US central bank before, although the Fed may not permit hedge funds to use offshore vehicles to conduct the transactions.
Hedge funds gain access to $200bn Fed aid
By Krishna Guha in Washington
Published: December 20 2008 05:01 | Last updated: December 20 2008 05:01
Hedge funds will be allowed to borrow from the Federal Reserve for the first time under a landmark $200bn programme intended to support consumer credit.
The Fed said on Friday it would offer low-cost three-year funding to any US company investing in securitised consumer loans under the Term Asset-backed Securities Loan Facility (TALF). This includes hedge funds, which have never been able to borrow from the US central bank before, although the Fed may not permit hedge funds to use offshore vehicles to conduct the transactions.
Are you joking? I am going to have to blog about that. Good call.
Hedge funds gain access to $200bn Fed aid
By Krishna Guha in Washington
Published: December 20 2008 05:01 | Last updated: December 20 2008 05:01
Hedge funds will be allowed to borrow from the Federal Reserve for the first time under a landmark $200bn programme intended to support consumer credit.
The Fed said on Friday it would offer low-cost three-year funding to any US company investing in securitised consumer loans under the Term Asset-backed Securities Loan Facility (TALF). This includes hedge funds, which have never been able to borrow from the US central bank before, although the Fed may not permit hedge funds to use offshore vehicles to conduct the transactions.
Can you please post a source link? Thank you in advance.
It's actually a bailout for the banks that hold those securitized loans. The Fed wants to artificially inflate the value of car loans, student loans, etc. to lower the writedowns.
i saw where the hedge fund victims will be able to have some recourse:
According to a Bloomberg story, investors can be refunded the capital gains taxes paid between 2005 through 2007. Additionally if the IRS can be convinced that investors are the victims of theft, their losses could be deducted from their income taxes back to 2006, with unused theft losses used to reduce tax liabilities for the next 20 years. The theft argument is especially effective since the losses would be deducted from ordinary income, not just the individual's future capital gains.
"The Madoff debacle will result in what amounts to another federal government bailout," Warren Kessler, an attorney at the Los Angeles law firm Kessler & Kessler, told Bloomberg. "It is likely that the Treasury will wind up refunding taxes," at least on the loss of money individuals invested with Madoff, he said.
However in an ironic twist, the many tax-exempt charities and pension funds swindled by Madoff would be closed off from such a method of recovery.
floridasandy
You frequently post very interesting information.
Most times there are few responses.
Maybe it's not shallow enough to inspire lots of posts. Maybe it's because a lot of it involves 'deeper' and/or more complicated issues.
But thank you for bringing these things to our attention.
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