Flash Comment
USA: More details of financial rescue plan
Mon, Mar 23 2009, 16:10 GMT
by Peter Possing Andersen, Signe Roed-Frederiksen
Danske Bank A/S | View company's profile
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Overview: Today at 13:00 the Treasury revealed details on the Public Private Investment Program (PPIF), which was originally announced as a pillar in the Financial Stability Plan of February 10, 2009. The PPIF is aimed at removing toxic loans and securities from the balance sheets of banks and other financial institutions. The aim is to help restart the credit mechanism, as the toxic assets are currently impairing the ability of the US banking system to raise new capital and expand lending.
Details: Using $75100bn in TARP capital and capital from private investors, the PPIF will generate $500bn in purchasing power to buy legacy assets - with the potential to expand to $1 trillion over time. The PPIF has two parts, addressing both the legacy loans and legacy securities clogging the balance sheets of financial firms.
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Tue, Mar 24 2009, 11:21 GMT
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