We're not sure if New York Fed President Bill Dudley was trying to be sarcastic or just completely out of his mind when he tried to reassure participants at a SIFMA summit that the Fed's risk of loss from the TALF program was remote due, in part, to the fact TALF assets are required to be AAA. Has he learned nothing from the past couple of years about the rating agencies' ability to accurately measure the risks in ABS land? No doubt Dudley's description of agency models as "reasonably robust" calmed everybody's nerves and set the stage for a banner summer when "legacy" CMBS are added to the program. Of course at the current rate of recent vintage AAA CMBS downgrades by S&P, there may be none eligible when they become part of the program in July and the Fed will then rely on those reasonably robust AA rated securities. http://dealbreaker.com/2009/06/dudley-says-talf-assets-totall.php LOL !!!