Treasury announced today (11/25/08) that it will allocate $20 billion to back a lending facility for the consumer asset backed securities (ABS) market established by the Federal Reserve Bank of New York. Under the new facility, the Federal Reserve Bank of New York will lend up to $200 billion on a non-recourse basis to holders of newly issued AAA-rated ABS for a term of at least one year. The Federal Reserve will lend an amount equal to the market value of the ABS less a "haircut" and will be secured at all times by the ABS. Treasury will provide $20 billion of credit protection to the Federal Reserve in connection with the facility, using its authorities in the EESA.