GE, FED TALF ripoff?

Discussion in 'Economics' started by gastropod, Oct 24, 2009.

  1. I think I see the error in my reasoning - please ignore this thread - Mods, please remove this thread!
    I can't seem to delete this thread

    As I have stated here before, I am not the most savvy and knowledgeable person out here...but, I do have some free time and I do some "armchair" research :D

    If I am not mistaken...here is a nice little glimpse of some of that "fine" AAA rated securities that the FED is backing with the TALF...I may be wrong, but it sure looks (to me) like GE has some crap that it pumped through the TALF. General gist: The stuff that GE pumped through TALF has a default rate of 9.17%

    Is a 9.17 % default rate "AAA" rating quality? On a $500,000,000.00 security?

    Here is the supporting documentation (somebody please correct me if my logic or facts are wrong!)...

    Filing for "Series 2009-1" http://www.sec.gov/Archives/edgar/data/1290200/000114420409054047/v163308_ex99-5.htm You can note the default rate in this link

    "Main filing" http://www.sec.gov/Archives/edgar/data/1290200/000114420409054047/0001144204-09-054047-index.htm

    GE's description of said instrument: http://www.ge.com/investors/investing/abs_reports/floorplan_master_note.html

    Google cache to show that this thing went through TALF: http://74.125.113.132/search?q=cach...+GE+Dealer+Floorplan&cd=9&hl=en&ct=clnk&gl=us

    New York Fed's statement that TALF is for AAA rated securities: http://www.newyorkfed.org/markets/talf_faq.html

    -gastropod