This article was originally published 25 March,
2009
On March 23, 2009, the Department of the Treasury released more
information regarding its new Public Private Investment Program, or
"PPIP." While Treasury's announcement still leaves
many specifics to be determined, including the timeline for
implementing the PPIP, the outlines of the program are now in
sharper focus. The following discusses the highlights of
Treasury's announcement.
- General
The PPIP contemplates the establishment of public-private
investment funds, or "PPIFs," to purchase legacy loans
from insured depository institutions and legacy securities from
certain financial institutions and will include either
FDIC-guaranteed or Treasury-provided financing, as well as Treasury
co-investment, to encourage investor participation. The PPIP will
consist of two programs – one for legacy loans (the
"Legacy Loans Program") and one for legacy securities
(the "Legacy Securities Program"). The Legacy
