Client Alert
| April 1, 2009
The Public-Private Investment Program
On Monday, March 23, Secretary Geithner announced the Public-Private Investment Program (the “Program”) as part of Treasury’s strategy to repair the balance sheets of lending institutions and address the loss of liquidity that has impaired the credit markets, including the secondary markets for mortgage loans and mortgage-backed securities. The Program consists of two separate plans, one designed for real estate loans held directly on the books of banks (“Legacy Loans”) and the other for certain mortgage-backed and asset-backed securities (“Legacy Securities”). Treasury estimates that, by employing $75 to $100 billion of Troubled Asset Relief Program (“TARP”) funds with private investment and government guaranteed credit, the Program will initially generate up to $500 billion in buying power to purchase these “Legacy Assets,” with the potential to expand the Program up to $1 trillion over time.
For more information, please contact your Dewey & LeBoeuf relationship partner, or one of the following:
This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
For further information on Dewey & LeBoeuf, please visit www.dl.com. +1 888 532 6383