Public-Private Investment Program

E383982

The Public-Private Investment Program was a U.S. government initiative launched during the 2008 financial crisis to partner public funds with private investors in purchasing distressed assets from financial institutions to help stabilize the banking system.

All labels observed (2)

How this entity was disambiguated

Statements (48)

Predicate Object
instanceOf United States government program
financial stabilization program
public-private partnership scheme
administeredBy United States Department of the Treasury
surface form: U.S. Department of the Treasury
administeredWithParticipationOf Federal Deposit Insurance Corporation
Federal Reserve System
alsoKnownAs PPIP
announcedBy Timothy Franz Geithner
surface form: Timothy Geithner

United States Department of the Treasury
announcedUnderAdministrationOf Barack Obama
beneficiaryType U.S. financial institutions
holders of legacy mortgage-related assets
componentProgram Legacy Loans Program
Legacy Securities Program
country United States of America
surface form: United States
criticizedFor complexity and opacity
moral hazard concerns
potentially favoring large financial institutions
designedToAddress capital shortfalls at financial institutions
illiquidity of mortgage-related assets
developedDuring 2007–2008 financial crisis
financingStructure government equity and debt financing
public-private co-investment
inception 2009
intendedEffectOnBanks remove troubled assets from bank balance sheets
intendedEffectOnMarkets establish market prices for illiquid assets
legalBasis Emergency Economic Stabilization Act of 2008
surface form: Emergency Economic Stabilization Act of 2008 (via TARP authority)
mainGoal improve bank balance sheets
restart markets for distressed mortgage-related assets
stabilize the U.S. banking system
support credit flow to households and businesses
mechanism government co-invests alongside private investors in asset pools
use of non-recourse loans to leverage private capital
policyContext part of broader U.S. financial rescue measures
response to systemic risk in financial sector
riskSharing losses shared between public sector and private investors
sector banking
capital markets
supportedFor leveraging private sector price discovery
limiting direct government ownership of assets
targetedAssetType asset-backed securities
legacy loans
legacy securities
mortgage-backed securities
timePeriod post-2008 financial crisis era
usesFundingFrom Federal Reserve System
surface form: Federal Reserve

Troubled Asset Relief Program
private investors

How these facts were elicited

Referenced by (5)

Full triples — surface form annotated when it differs from this entity's canonical label.

Troubled Asset Relief Program keyProgram Public-Private Investment Program
Emergency Economic Stabilization Act of 2008 relatedProgram Public-Private Investment Program
Public Law 110-343 relatedProgram Public-Private Investment Program
Timothy Geithner as United States Secretary of the Treasury oversawProgram Public-Private Investment Program
subject surface form: Timothy Geithner
this entity surface form: Public-Private Investment Program (PPIP)
Capital Purchase Program relatedTo Public-Private Investment Program