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Alerts
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U.S. Treasury Announces Public-Private Investment Program
March 25, 2009
On March 23, 2009, the U.S. Department of the Treasury (“Treasury”) announced the Public-Private Investment Program (the “Program”). The Program, using $75 to $100 billion in TARP funds and capital from private investors, will initially provide funding for $500 billion of purchases of illiquid loans (“Legacy Loans”) and securities backed by mortgages on residential and commercial properties (“Legacy Securities”). The Program has the potential to expand to $1 trillion in funding. The Program involves the formation of two different types of Public-Private Investment Funds (“PPIFs”) by asset managers to purchase illiquid assets with government assistance, as well as an expansion of the Federal Reserve Bank of New York’s (“FRB-NY”) Term Asset-Backed Securities Loan Facility (“TALF”) program.
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