Treasury Extends Application Deadline for Toxic Assets Plan

The 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.

About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.

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