“The Fed mobilized 13.3’s lending powers so as to justify purchases by creating five separate Delaware limited liability companies: Maiden Lane LLCs I, II, and III, Commercial Paper Funding Facility LLC (CPFF), and Term Auction Lending Facility LLC (TALF). It lent to these corporations under the authority of Section 13.3. These LLCs proceeded to use these funds to purchase assets not specifically authorized by the Federal Reserve Act. In short, the Federal Reserve attempted to get around [legal] limitations concerning asset purchases by lending to the five recently created LLCs it controlled, and ordering these LLCs to purchase whatever assets it deemed necessary.”

http://consultingbyrpm.com/blog/2013/07/why-maiden-lane.html

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