TALF is closed to new lending and Treasury does not expect there to be any cost to the taxpayers from the program.
Since the launch of TALF, secondary market spreads have narrowed significantly across all eligible asset classes. Improvements in the secondary credit market contributed to the re‐start of the new‐issue market. For instance, in November 2009, TALF funds facilitated the first issuance of commercial mortgage‐backed securities since June 2008.
Treasury originally committed to provide credit protection of up to $20 billion in its subordinated loan to TALF, LLC to support up to $200 billion of lending from the Federal Reserve Bank of New York (FRBNY). Treasury’s commitment was later reduced to $4.3 billion in June 2010 when the program closed to new lending.
In June 2012, the Federal Reserve Board and Treasury agreed that it was now appropriate to further reduce the credit protection Treasury provides the TALF, LLC to $1.4 billion from $4.3 billion.