"Our plan will help restart the flow of credit, clean up andstrengthen our banks, and provide critical aid for homeowners andfor small businesses. As we do each of these things, we will imposenew, higher standards for transparency and accountability,"Treasury Secretary Timothy Geithner says in prepared comments.

The most notable feature for the CRE industry is a $500-billionendeavor to convince private sector entities such as hedge fundsand equity pools to purchase toxic mortgage-backed debt from banks.Fittingly called Public Private Investment Fund, the program willleverage the Federal Reserve Bank's balance sheet to loan money forthe purchase of these assets. FDIC, for its part, will provideguarantees that their value will not drop below a certainlevel.

The Financial Stability Plan also expands the $200-billion TALFfacility--formed last year to support consumer lending--to asmuch as $1 trillion. Part of this money will be used to purchaseAAA-rated CMBS--a huge relief to the industry. "If executedproperly, this could have a significant impact on commerciallending and specifically on getting CMBS moving," Brendan Reilly,SVP of government relations for CMSA, tells GlobeSt.com.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.