Treasury to say 3 more funds to buy toxic assets

[Joanne98]

Source: Reuters

WASHINGTON (Reuters) - The U.S. Treasury Department will announce on Monday that three more funds have met requirements to get government financing that will let them begin purchases of banks' so-called toxic assets.
Treasury said last Wednesday, which was September 30, that Invesco Ltd and Trust Company of the West, or TCW, were the first of nine public-private investment funds to raise the necessary capital to launch the program for buying toxic assets.

Three more -- AllianceBernstein LP and its sub-advisors Greenfield Partners LLC and Rialto Capital Management LLC; BlackRock Inc and Wellington Capital Management -- each will be named on Monday as also having raised enough capital to participate in the program.

The Public-Private Investment Program, known as the PPIP, has been scaled back as banks have shown they can raise capital in the private sector without first unloading troubled assets, many of which are tied to bad mortgages.

When the plan was announced in March, Treasury hoped the funds could take up to $1 trillion of toxic assets from banks' balance sheets. But that target is now around $40 billion, made up of private and public investment plus debt financing.


Read more: http://www.reuters.com/article/newsOne/idUSTRE5940FG20091005

[Stumbler]

1. When are we going to realize?

If something is "toxic" it cannot by definition be "an asset." Besides, this 'recovery' would look a lot better if our government were buying individual citizens' "toxic, adjustable rate loans" rather than buying out a bank's toxic balance sheets.

[Lorien]

2. What an awkwardly worded headline

Call it what it is: socialism for the wealthy. They believe in the free market-as long as their gambles win.

[CountAllVotes]

3. damn!

AllianceBernstein!? :wtf: I thought they were supposed to have the gold ring embossed somewhere that I won't mention.

ENOUGH.

:kick: