Feds Pick 9 Firms to Run PPIP Program
July 8, 2009 by Stephen Kersey
Filed under Business
On Wednesday, the government tapped nine financial firms to run toxic asset programs. The firms were selected from a pool of over 100 applicants. They will have 12 weeks to raise $500 million each. The investments will be matched by the Treasury Department and further supplemented from debt financing. The financial firms chosen to take part in this scaled down program aimed at helping banks include:
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- BlackRock (BLK, Fortune 500)
- AllianceBernstein (AB)
- Oaktree Capital Management
- Invesco (IVZ)
- Angelo, Gordon & Co.
- Marathon Asset Management
- RLJ Western Asset Management
- The TCW Group
- Wellington Management Company
CNNMoney’s David Ellis says:
Under the program, the government will run auctions between the banks selling assets and investors buying them. The aim is to effectively create a market. The goal is to help cleanse the balance sheets of many of the nation’s largest banks and help get credit flowing again.
The goverment investment will be up to $30 billion to help the program get started. In addition to the nine firms, 10 women-owned and minority-owned asset management firms were also seleted to take part as partners.
