Lawyers are working on enabling hedge funds to avoid scrutiny and documents that go together with term asset-backed securities loan facility (TALF) deals, The Financial Times reports. They are trying to establish legal entities in which hedge funds can take stakes and which can then borrow money from the Federal Reserve.

Lawyers are uncertain whether such special purpose vehicles would avoid H1B visa restrictions. By offering cheap loans, the Fed can allow hedge funds to boost the returns available on low-risk securities backed by auto loans and credit card receivables.

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