Treasury Secretary Timothy Geithner has unveiled a sweeping plan to loosen up the still-tight credit markets. The plan, announced on Feb. 10, aims to restore lenders’ confidence and make it easier for small businesses, real estate firms and other potential borrowers to obtain loans. “Our plan will help restart the flow of credit, clean up and strengthen our banks and provide critical aid for homeowners and small business,” Geithner said.
A key component of the plan is expanding the Federal Reserve’s Term Asset-Backed Securities Loan Facility (TALF) from $200 billion to as much as $1 trillion.