The Federal Reserve and Treasury Department Tuesday announced the launch of a lending facility for consumer-backed debt that they said potentially will generate up to $1 trillion in lending.

They said the New York Federal Reserve Bank will lend up to $200 billion to owners of triple-A rated asset-backed securities supported by new and recently originated auto loans, credit card loans, student loans and government-guaranteed small business loans.

In an announcement, they said that consideration was being given to allowing a broader range of assets to to be considered as backing for asset-backed securities that would be supported under the program at a later date.

The Fed and Treasury said the Term Asset-backed Securities Loan Facility, or TALF, is designed to give securitization markets a jolt by offering financing for investors to encourage them to buy AAA-rated asset-backed securities.

Markets for the securitization of loans have virtually shut down since the financial crisis worsened in October, making it difficult for would-be new-car buyers to get loans or to conclude other basic consumer transactions.

By April, the program could be extended to include asset-backed securities backed small ticket equipment, heavy equipment and agricultural loans and leases.

Other securities under consideration include private-label mortgage-backed securities, collateralized loan and debt obligations.

In addition, the Fed and Treasury said they might include non-auto floor loans as well as securities backed by mortgage-servicer advances.