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Old 12-21-2008, 08:18 AM
 
12,869 posts, read 13,421,740 times
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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.
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Old 12-21-2008, 10:47 AM
 
Location: Great State of Texas
86,068 posts, read 74,618,533 times
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It was a "quiet" announcement on Friday.

Remember when someone in the Government (Pres, Treas or Fed) said that no hedge fund would get any of the bailout money ?

Should be clear as day now that the rich are saving themselves with our money in the form of future taxes.
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Old 12-21-2008, 10:56 AM
 
Location: Seattle, WA
209 posts, read 548,837 times
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Quote:
Originally Posted by floridasandy View Post
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.
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Old 12-21-2008, 12:24 PM
 
3,722 posts, read 4,710,947 times
Reputation: 4751
Quote:
Originally Posted by floridasandy View Post
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.
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Old 12-21-2008, 12:37 PM
 
4,711 posts, read 11,165,991 times
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Note the spelling of "programme"....it must be the foreign press.

So it might be true...
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Old 12-21-2008, 12:39 PM
 
3,722 posts, read 4,710,947 times
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I found this anyway. FT.com / US / Economy & Fed - Hedge funds gain access to $200bn Fed aid
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Old 12-21-2008, 01:48 PM
 
8,884 posts, read 7,863,740 times
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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.
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Old 12-21-2008, 02:00 PM
 
Location: occupied east coast
884 posts, read 2,018,387 times
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I used to be opposed to all of these "bail outs", but what the heck, it's turned into a free for all.

Grab what you can get and hang on.

I only wish my dog was in this fight !!!
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Old 12-21-2008, 02:23 PM
 
12,869 posts, read 13,421,740 times
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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.

unbelievable!
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Old 12-21-2008, 02:32 PM
 
Location: Florida
20,967 posts, read 21,047,475 times
Reputation: 25175
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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