Federal Reserve « News Donkey

Fed Launches New $200B Consumer Credit Program

By JEANNINE AVERSA | AP Economics Writer

WASHINGTON – The Federal Reserve on Tuesday rolled out a much-awaited program aimed at boosting the availability of credit to consumers and small businesses.

The Fed will lend up to $200 billion to spur consumer lending — for autos, education, credit cards and other consumer debt. The money will be used to provide financing to investors to buy up the debt.

The bold program, dubbed the Term Asset-Backed Securities Loan Facility, was first announced late last year and originally scheduled to start in February.

Participants — companies and investors that pledge eligible collateral to back the loan — must request the new government loans by March 17. The Fed will provide the three-year loans on March 25.

The Fed said the program has the potential to generate up to $1 trillion of lending for businesses and households …

March 3, 2009 Posted by newsdonkey | Domestic Affairs, Federal Reserve, Obama Administration, TALF Program | Credit, Federal Reserve, Lending, Loans, Obama, TALF | Leave a Comment

About

News Donkey provides an aggregation of news reports and media coverage about the Obama administration and related current events with emphasis on controversial topics of the day. From time to time, editorial opinion may also be provided but the goal here is just really to give a snapshot of current issues in an objective fashion. As we all know, the news media in general tends to be rather biased but there are “gold nuggets” of information to be found out there. If you have suggestions for other great news articles or videos about these issues, please feel free to make comments and provide links. Thanks for visiting.

News Donkey takes no credit for referenced articles (unless indicated as “Authored by News Donkey”) nor does News Donkey share or endorse any opinions of the writers for referenced articles or other sites, or of the people quoted or mentioned in articles or other sites.