WASHINGTON, DC - The Federal Reserve Bank of New York has released a joint response from chairman of the Federal Reserve Ben Bernanke and New York Fed president William Dudley to the questions of the Congressional Oversight Panel.
The Congressional Oversight Panel's inquiry looked into the purpose and efficacy of the Treasury's new Term Asset-Backed Securities Loan Facility (Talf). The $1 trillion Talf aims to resuscitate consumer lending by buying consumer debt from banks.
Talf is a response to the disruption of normal credit for loans, which has exacerbated the effects of the downturn in the housing cycle, and the continued illiquidity problems.
The Fed responses can be read here.