Davis Polk advises NY Fed on $200bn loan facility

Davis Polk & Wardwell has snared the lead role advising the New York Federal Reserve Bank on a $200bn rescue loan facility for the ailing asset-backed securities market.

Davis Polk New York-based partners Bradley Smith, James Florack and Arthur Long are leading the team advising the New York Fed on the creation of the Term Asset-Backed Securities Loan Facility (TALF).

Under the new programme the New York Fed will auction an agreed amount of loans each month for a year with assets being held in a special purpose vehicle.

The US Treasury is providing $20bn of credit protection for TALF, drawing from the $700bn bailout package.

Davis Polk has won a series of mandates with the US Government in recent months including partner Bradley Smith and Marshall Huebner advising the US Treasury on its bailout of insurance group AIG.