Public Private Investment Program

A plan designed to value and remove concerned possessions from the balance sheet of troubled financial institutions in the U.S. The PPIP’s goal is to create partnerships with secluded investors to buy lethal assets. The suite is intended to increase liquidity in the market and aid as a price-discovery tool for appreciating troubled assets.
The PPIP consists mostly of two parts: a Legacy Loans Program and a Legacy Securities Program. The Legacy Loans Program uses FDIC-guaranteed debt along with isolated equity to buy bothered loans from banks. The Legacy Securities Program is intended to use funds from the Federal Reserve, Treasury and private investors to reignite the market for legacy securities. Legacy securities include certain mortgage-backed securities, asset-backed securities and other securitized assets the government deems to be eligible for the program.