Willbur Ross Gives Thumbs Up To The TALF

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It looks like Wilbur Ross will be participating in the new program from the Federal Reserve program that aims to channel $1 trillion into securities backed by consumer debt.

“A lot will depend on the actual arithmetic and actual offerings they come up with,” Ross said today in an interview with Bloomberg. “But in principle I think it addresses the requirements we think it should address.”

Here’s how the TALF works: the Federal Reserve will lend money to investors to partially fund purchases of securitized consumer debt whose value will be partially guaranteed.

“Investors would have a limited risk factor,” Ross is quoted by Bloomberg as saying. “If they correctly pick and price underlying assets they should be able to not shoot the moon but to make a reasonable return.”

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