Treasury to help industry, dealers

Treasury Secretary Timothy Geithner declared that the U.S. would spend up to $1 trillion to boost consumer credit, including car loans and inventory financing for dealers. Geithner noted that the approach of spending money to boost banks had not had the desired effects on the greater economy. 

The new effort is similar in principal to one announced by the Bush administration in November, which was never implemented. It is titled Term Asset-Backed Securities Loan Facility, (TALF), and is intended to rejuvenate loans for citizens by unfreezing the “secondary market” for loan-backed securities.

Geithner also noted that the $700 billion TARP fund would be overhauled and possibly renamed. TARP was the source of nearly $25 billion in aid to GM, GMAC, Chrysler, and Chrysler Financial.