TALF Backing after Bailout

This kills me. Bank of America buys the nations worst mortgage lender, Countrywide, then buys the largest retail broker, Merrill Lynch, gets bailed out with government money for the 2 lousy deals, and now floats FDIC backed debt for consumers to buy cars! They are getting government backing on the debt but they keep the profits!! What is wrong with this picture.

Asset-Backed Securities
Bank of America/Merrill Lynch is in the market with a $1.995 billion auto loan-backed deal, according to a person familiar with the matter.

The deal is eligible for a Federal Reserve program, the Term Asset Backed Securities Loan Facility, or TALF, through which investors can procure cheap loans to buy newly created consumer loan-backed and new and existing commercial mortgage-backed bonds.
Bank of America's deal, dubbed BAAT 2009-2, is jointly led by Bank of America/Merrill Lynch, Barclays Capital (BCS), Citigroup, Credit Suisse Group (CS) and Royal Bank of Scotland Group PLC (RBS).

Last month, Bank of America sold a $3.993 billion auto-loan backed deal at 135 basis points over a benchmark. That was the bank's first deal eligible under TALF.

The bank is completely ripping off everyone in their retail banking business, ripping off the government in their participation in government debt issues and is a monolithic monster of a banking organization to boot (yes, "to big to fail").

This program needs to stop. If the "markets" cannot finance consumption at these ridiculously low subsidised interest rates it means the interest rates are not realistic and the Fed needs to allow the markets to operate!!

The longer the Fed subsidises interest rates for everything from consumer loans to mortgages the longer it is putting all of the financial institutions and the FDIC in the tank when the subsidized interest rates are "rebalanced" to the "real" market interest rates down the road and all of the financial institutions freeze up again because their returns on subsidized capital deployed will not allow them to be profitable when they have to pay substantially higher rates to access the markets for liquidity.

This is elementary stuff guys. Stop the subsidized consumption loans NOW before you put our entire financial system (and now the taxpayer) in a real pickle about 12-18 months from now and throw the country into a REAL DEPRESSION with no more options left...

NOW