this sounded like some good news...
Fed launches new $200B consumer credit program
WASHINGTON â€“ 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 â€” for autos, education, credit cards and other things. 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 â€” companies and investors that pledge eligible collateral to back the loan â€” must request the new government loans by March 17. The Fed will provide the three-year loans on March 25.
Under the program, the Fed will buy securities backed by different types of debt including credit card, auto, student and small business loans. The credit crunch â€” the worst since the 1930s â€” has made it much more difficult for people to obtain such financing , and those that do can be socked with high rates.