Treasury Extends Application Deadline for Toxic Assets PlanThe Treasury Department announced modifications to the plan to restart the market for toxic assets weighing on banks' balance sheets, including an extended application deadline and clarifications about participation criteria.
The Treasury's updated guidance is aimed at potential investors and participants in the "Legacy Securities" part of the new two-pronged Public Private Investment Program. Treasury says it will make co-investments to support the market for legacy mortgage- and asset-backed securities before 2009 under the "legacy securities" part of the toxic asset plan.
Originally, Treasury said it would approve up to five asset managers, but yesterday said it is open to considering a larger number of managers for the program.
Earlier it had said fund managers would be pre-qualified based on certain criteria, including the ability to raise capital and demonstrated experience investing in the eligible asset classes and a minimum threshold of eligible assets under management.
Now Treasury says firms that don't meet all of the criteria will not necessarily disqualify a proposal. Treasury says it is particularly interested in program participation by small, minority and women-owned businesses. The deadline for email submissions of applications has been extended until April 24.