Fed/Treasury Announce $200B TALF For Assets

The Treasury Department and the Federal Reserve said they will launch the $200 billion Term Asset-backed Securities Loan Facility on March 17, with funding available March 25.

“The TALF has the potential to generate up to $1 trillion of lending for businesses and households,” according to a joint press release.

The Federal Reserve Bank of New York will lend up to $200 billion to eligible owners of certain triple-A rated ABS backed by newly and recently originated auto loans, credit card loans, student loans, and Small Business Administration-guaranteed loans, the release said. Issuers and investors in the private sector are expected to begin arranging and marketing new securitizations of recently generated loans, and subscriptions for funding in March will be accepted on March 17.

Monthly fundings are scheduled through December 2009 or longer if the Fed chooses to extend the facility.

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