The news I had read via Bloomberg on 29 Jan reported that U.S Treasury agreed to commit as much as $60 billion to shore up the market for student loans and help reduce the illiquid assets clogging banks’ balance sheets.
They will use Federal Financing Bank to provide a backstop for an initiative put together by Citigroup Inc. and Morgan Stanley. The loan will be able to purchase existing and new student loans from banks, and issue asset-backed commercial paper to finance itself.
That effort, called the Term Asset-Backed Securities Loan Facility, is scheduled to start next month (should be this month – February). Loans that are guaranteed by the Education Department’s Federal Family Education Loan Program are eligible for the effort.
For the full news, read it on Bloomberg.
No comments:
Post a Comment