An Analysis of the Department of Treasury’s Public-Private Investment Program

March 27, 2009
The Department of Treasury recently announced details of the Public-Private Investment Program (“PPIP”), the latest component of the Financial Stability Plan. Part of the Treasury’s ongoing effort to improve the functioning of the financial system, the PPIP provides government equity co-investment capital and government- or FDIC-guaranteed debt financing to encourage private investors to purchase mortgage loan pools, RMBS, CMBS, and other assets.

This update provides a comprehensive overview of the proposed program, highlighting important tax considerations and detailing many of the open issues that must be addressed during the public comment process. The update also contains a side-by-side comparison of the two PPIP components: the Legacy Loans Program and the Legacy Securities Program.