PPIP

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Fixing bank balance sheets key to recovery of credit markets, BIS says

Central banks have been effective in stabilizing credit markets following last fall’s meltdown, but the key to a full-fledged restoration of credit activity is fixing bank balance sheets.
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Analysis: House panel probes the ‘science’ of bank insolvency

Banking may not seem to fall under the purview of science and technology, but given that economics is known as the “dismal science,” an obscure congressional subcommittee heard testimony from four economists trying to pin down the what, when and where of insolvency, and what it means for policy.
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Why Banks Won’t Sell Legacy Assets Without Changes to PPIP

While its underlying objectives are commendable, the recently-announced Public-Private Investment Program is unlikely to succeed because banks with toxic assets will have little, if any, financial incentive to sell at the prices likely to be offered by private investors. However, certain changes to PPIP will make it much more likely that selling banks and prospective purchasers will be able to “get to yes.”
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Treasury’s public-private funds for toxic assets: How much ‘skin in the game’ will they require?

The administration’s complex program to remove toxic assets from banks’ balance sheets drew a step closer to reality with the announcement this week that more than 100 potential fund managers had applied for the securities program.
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Industry worried about political backlash in public-private partnership

A top financial industry group supported the objectives of the government’s Public-Private Investment Program to remove toxic assets from banks’ balance sheets, but warned that some terms had to be ironclad before the private sector would feel safe in taking part.
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TARP oversight panel skeptical about Treasury approach to bailout

While it acknowledges that the Treasury’s Public-Private Investment Program using congressional bailout funds might work if its assumptions are correct, the bipartisan panel charged with oversight of the Troubled Asset Relief Program funds is decidedly skeptical.