United States Department of the Treasury Adopts Public-Private Investment Program
On March 23, 2009, the United States Department of the Treasury announced the Public-Private Investment Program, to which Treasury currently intends to allocate $75 to $100 billion of TARP funding. The first component of the Program, the Legacy Loans Program, will involve purchases of pools of troubled loans from insured depository institutions by public-private investment funds that will be financed with equity from TARP and private investors and FDIC-guaranteed debt. The second component, The Legacy Securities Program will involve purchases of troubled securities from various types of financial institutions by PPIFs that will be financed with equity from TARP and private investors and debt financing from Treasury. The Legacy Securities Program will also make such legacy securities eligible for non-recourse financings under the Federal Reserve's existing Term Asset-Backed Securities Loan Facility.