“Details of Toxic Assets Plan Announced by Treasury”

The U.S. Treasury provided details today of its program to offer financing and capital for the purchase by private investors of troubled and illiquid assets held by banks. The Public-Private Investment Program will use the collective resources of the Treasury, the Federal Reserve and the Federal Deposit Insurance Corp. to entice private capital to buy whole loans and pre-2009 residential and commercial mortgage-backed securities originally rated AAA. This Stroock Special Bulletin alerts clients to the announcement of the Treasury Program and attaches the Treasury release.