Treasury Unveils $1T Plan to Clean Up Toxic Assets
Three-part program will push investors to buy toxic assets
By Jason Farago,  Newser Staff
Posted Mar 23, 2009 8:09 AM CDT
Treasury Secretary Timothy Geithner listens as President Barack Obama delivers remarks to small business owners, community lenders and members of Congress, March 16, 2009.   (AP Photo)
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(Newser) – The Treasury unveiled its three-part Public-Private Investment Program today, reports the Wall Street Journal. Under the program, up to $100 billion in TARP funds will be partnered with private investments to buy troubled assets. The Treasury, Federal Reserve, and FDIC will work with hedge funds and private equity to try to restart the market, and taxpayers will gain if investments turn profitable.

In addition to measures targeting troubled assets, the program also includes one to jumpstart traditional lending, which has deteriorated due to the recession, with the FDIC providing a guarantee. Also the government will create several private investment funds that will trade in risky securities, with the Treasury matching private capital dollar for dollar.