October 15, 2007
HP-609

Treasury Statement on Private-Sector Announcement
Of Liquidity Facility for Asset Backed Commercial Paper

Washington- The U.S. Department of the Treasury issued the following statement today regarding the intention of major global banks to create a liquidity facility to bolster the asset backed commercial paper market:

"Treasury is pleased with the response by the private sector to enhance liquidity in the short term credit markets. The joint efforts of domestic and international financial institutions, broker dealers, and investors have resulted in a potential structure to improve liquidity in the asset backed commercial paper markets. This proposal will complement other solutions investors and asset managers may utilize in committing and deploying capital to support more efficient markets.

"The Department appreciates this global consortium's cooperation during the last several weeks and their leadership in developing a market-based response to this situation. Such efforts help to foster orderly capital markets."