The Public-Private Investment Program
Client Memorandum

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The long awaited public-private investment program announced by Secretary Geithner on March 23, 2009 contains two key components: a securities purchase program, designed to remedy the illiquidity in the secondary markets for certain mortgage-backed securities, and a loan purchase program, designed to create a market for troubled loans on the balance sheets of US banks and thrifts. The assets will be purchased by funds capitalized by equity contributed by Treasury and private investors and leveraged by potentially attractive direct government or FDIC-guaranteed debt financing.