Fed announces new facility to boost consumer lending

11/25/2008 | Bloomberg1 · Reuters

The Federal Reserve Board has announced the establishment of a facility aimed at helping consumers and small businesses with their credit needs. Under the Term Asset-Backed Securities Loan Facility, the Federal Reserve Bank of New York will lend as much as $200 billion to holders of specific AAA-rated, asset-backed securities that are collateralized by small-business loans, credit card loans, student loans and auto loans. The Fed also announced a program through which it would purchase the direct obligations of Fannie Mae, Freddie Mac and Federal Home Loan Banks, as well as the mortgage-backed securities guaranteed by Fannie, Freddie and Ginnie Mae. The statement from the Fed indicates the plan may be extended to cover CMBS at a later date.

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Bloomberg1 · Reuters

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