On March 23, 2009, the Treasury Department (Treasury) announced the long awaited details of the Public-Private Investment Program, the prong of the new Administration’s Financial Stability Plan designed to address “legacy” assets. Legacy assets are those previously known as “troubled” or “toxic,” the assets the values of which have declined due to the residential mortgage meltdown and the many ripple effects that followed. The Public-Private Investment Program (Program) has two components, one for legacy loans (Loans Program) and the other for legacy securities (Securities Program). Treasury will provide up $100 billion of capital to the two programs. The Federal Deposit Insurance Corporation (FDIC) will support funding for the Loans Program, and the Federal Reserve Board (Federal Reserve) will authorize funding for the Securities Program through the existing Term Asset-backed securities Loan Facility (TALF).

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