Limited Sale of Toxic Assets | Marketwatch

zyakaira notes:

You would have also noted the change in IMF estimates bringing the potential industry losses to $2.8 trillion of which less than half have been recognized as of yet in hope of recovering asset prices. European Banks are as usual the bigger perpetrators, not having recognized these losses. Needless to say, Private investors stayed away as use of government capital, provisioning and IFRS are being put into limited use by the global banks not used to disclosures and public vilification..retail interest is almost non existent, much like the early years of debt markets in Asia and now in Africa as people compare the risk and the return unfavourably with good old Gold and Oil

Private investors have injected $1.13 billion of funds into a much-anticipated Treasury Department program seeking to remove toxic mortgage securities from financial institutions, the Treasury Department said Wednesday.The plan, known as the Public Private Investment Partnership, or PPIP, has the Treasury investing up to $30 billion of equity and debt into the program to match as much as $10 billion put up by private investors. Treasury will match up to $10 billion in equity from private investors along with as much as $20 billion in debt financing.The purchases would be made through auctions, and the government financing and equity was included to give the private investors an incentive to participate.As part of the initial investments, Ivesco Ltd. And The TCW Group Inc. have each committed $500 million to the program.The $1.13 billion of private capital has been matched 100% by Treasury, representing a total equity capital commitment of $2.26 billion. Treasury also is providing debt financing capital bringing the total purchasing ability of the firms to $4.52 billion.”I am pleased with the progress we have made in launching PPIP,” Treasury Secretary Tim Geithner said in a statement. “This program allows Treasury to partner with leading investment management firms to increase the flow of private capital into the market for legacy securities and give taxpayers a chance to share in the profits.”Treasury acknowledged that the program is much smaller than it initially envisioned because “financial market conditions have improved.” The program was originally envisioned to remove $1 trillion of toxic securities from financial institutions. However, Treasury said it would expand the program, if needed.

via Investors raise $1.13 billion to buy toxic assets – MarketWatch.


About zyakaira

Investment Banker, 40s, Bangalore This Biopic and this web recreates how one point of view, one person can impact a tremendous economic engine that the world thrives and mis-thrives on. This one has the knowledge and the civil sense , the art of conversation and some good writing to mentor others as powerful and help global managers develop and fine tune their approach on US markets, China, India and the world. Read on here, and let me know what you need. It can be a race for TRPs, a race for new markets and a race to do what is right. I have the pulse of the crisis, the recovery and the market direction and can help you build and refine your strategy as i have helped thousands of managers and multiple global corporations. Of course, it’s more fun if you talk to me. I am in favor of leading this moving of the economic crisis and will partner with you in a soft and subtle way, just the way we both ride to the top. But you can write with us, opine and just reply with aplomb and shine on Twitter , 4 square , Facebook and any other social “choupal” of choice via zyaadakairaada Profile & Portfolio - SocialPicks Different flavours at:

Posted on October 1, 2009, in Obamanomics, TARP, US and tagged , , , , , . Bookmark the permalink. Leave a comment.

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