The Public-Private Investment Program for Legacy Assets

Thursday, March 26, 2009

On March 23, the US Department of the Treasury - in conjunction with the Federal Deposit Insurance Corporation and the Federal Reserve - announced the Public-Private Investment Program ("Program") as part of its efforts to repair balance sheets throughout the US financial system and ensure that credit is available to households and businesses. Using $75 to $100 billion in capital from the Troubled Asset Relief Program and capital from private investors, the Program will generate at least $500 billion in purchasing power to buy eligible residential and commercial mortgage loans and mortgage-backed securities. The Program provides an opportunity for private sector entities to participate in various capacities.

Please join us for a 30-minute teleconference, the next in our continuing series on the financial crisis, in which we will address such questions as:

  • What assets and entities are eligible for the Program and how will it work?
  • What does the Program mean for banks, investors, fund managers and other participants?
  • What potential issues are presented by the Program for participants?

Mayer Brown's Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm's global resources from multiple practices and offices, the Initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.

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