WASHINGTON (Reuters) - The Federal Reserve and Treasury Department on Tuesday announced the launch of a lending facility for consumer-backed debt that they said potentially will generate up to $1 trillion in lending.
They said the New York Federal Reserve Bank will lend up to $200 billion to owners of triple-A rated asset-backed securities supported by new and recently originated auto loans, credit card loans, student loans and government-guaranteed small business loans.
In an announcement, they said that consideration was being given to allowing a broader range of assets to be considered as backing for asset-backed securities that would be supported under the program at a later date.
(Reporting by Glenn Somerville; Editing by Theodore d'Afflisio)
