The Fed has already had to delay the launch of its long-awaited and much-touted TALF program, a structure that is designed to revive lending in credit cards, auto loans and other consumer credit sectors. The complexity of the documentation is said to have forced the delay until Thursday of this week but some fret that the delay has more to do with a lack of interest to participate from market players. Disappointment in another government program could ramp up risk aversion once again. Some see the Fed coming into buy Treasuries if the TALF does not fly. Stay tuned.
Also of note, the Fed just announced that they have delayed the effective date of a new stricter set of bank capital rules for two years.
