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The Securities Industry and Financial Markets Association (SIFMA) and the American Securitization Forum (ASF) today issued the following statement on the announcement by the Treasury Department and the Federal Reserve Board on the launch of the Term Asset-Backed Securities Loan Facility (TALF), and by the Federal Reserve Bank of New York that it will lend up to $200 billion to eligible owners of certain AAA-rated asset-backed securities backed by newly and recently originated auto loans, credit card loans, student loans, and SBA-guaranteed small business loans.
“We strongly support the steps Treasury and the Federal Reserve are taking to ease illiquidity in highly credit-worthy securitization instruments. These initiatives should help facilitate the extension of credit to consumers and businesses for the purchase of autos, student loans, and homes -- stimulating lending to both consumers and businesses,” said Tim Ryan, CEO of SIFMA. “These are helpful and important steps to address the stalled credit markets and to restore stability to the financial and capital markets. Both the ASF and SIFMA look forward to working with Treasury, the Federal Reserve Board and the Federal Reserve Bank of New York in implementing this program and working with them to refine and expand its application over time to other asset classes.”
