The U.S. Department of the Treasury and the Federal Reserve announced last Tuesday a program meant to inject liquidity into the beleaguered financial system.

The initiative, which is called the Term Asset-Backed Securities Loan Facility (TALF) will create a $200 billion one-year facility to offer non-recourse loans, under The Federal Reserve Bank of New York (FRBNY), to holders of triple-A ABS that are backed by newly and recently originated auto, student and credit card loans, as well as Small Business Administration (SBA) loans made to U.S. borrowers.

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