Fed expands bailout for consumer, business related securities
The Federal Reserve said Tuesday that on July 1 it will expand a program which boosts credit among companies that issue consumer and business asset-backed securities.
The Fed’s Term Asset-Backed Securities Loan Facility will include some high-quality commercial mortgage backed securities issued before January 1, 2009.
The Fed’s program was first authorized in November last year, in the midst of one of the most turbulent months in the current financial crisis.
The loans the Fed is offering are backed by consumer and business loans and leases. The Fed said in May it would expand the program.
The Fed’s objective is to restart the market for so-called “legacy securities” which investors have backed away from during the financial crisis amid deep distrust about how to asses their value.
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