Guidelines for the

Legacy Securities Public-Private Investment Program 

Justification 

The objective of this program is to support market functioning and facilitate price discovery in the 

markets for asset-backed securities, allowing banks and other financial institutions to re-deploy 

capital and extend new credit to households and businesses. 

Eligibility Considerations 

The United States Department of the Treasury will determine eligibility of participants and allocation 

of resources under the Emergency Economic Stabilization Act (EESA) pursuant to the Legacy 

Securities Public-Private Investment Program (S-PPIP). Institutions will be considered for 

participation in the S-PPIP on a case-by-case basis. In determining whether or not an institution is 

eligible for participation, Treasury may consider, among other things, a variety of criteria including 

the following: 

1. Demonstrated capacity to raise a minimum amount of private sector capital; 

2. Demonstrated experience investing in targeted asset classes, including through performance track 

records; 

3. A minimum amount (market value) of the targeted asset classes currently under management; 

4. Demonstrated operational capacity to manage the investments in a manner consistent with 

Treasury’s stated investment objectives while also protecting taxpayers; and 

5. Headquartered in the United States (although the ultimate parent company need not be 

headquartered in the U.S.). 

Treasury may amend or supplement these criteria from time to time. To ensure robust participation 

by both small and large firms, these criteria may be viewed on a holistic basis and failure to meet any 

one criterion may not necessarily disqualify an institution. In making these judgments, Treasury will 

obtain and consider information from a variety of sources and will take into account 

recommendations received from regulatory bodies, as applicable, that could provide insight into any 

potential issues associated with selecting a particular institution. Treasury will also conduct due 

diligence as it determines is necessary. 

Form, Terms, and Conditions of Treasury Investment 

Treasury will determine the form, terms, and conditions of any investment made pursuant to this 

program on a case-by-case basis in accordance with the considerations mandated in EESA. Treasury 

may invest in any financial instrument, including debt, equity, or warrants, that the Secretary of the 

Treasury determines to be a troubled asset, after consultation with the Chairman of the Board of 

Governors of the Federal Reserve System and notice to Congress. Treasury will require that any 

Public-Private Investment Fund formed pursuant to this program provide Treasury with warrants or 

alternative consideration, as necessary, to minimize the long-term costs and maximize the benefits to 

the taxpayers in accordance with EESA. Treasury will also require any institution participating in 

the program to adhere to rigorous compliance standards. In addition, Treasury will consider other 

measures, including limitations on the institution’s fees and expenditures with respect to Treasury’s 

investments, or other corporate governance requirements, to protect the taxpayers’ interests. 

These program guidelines are being published in accordance with the requirements of Section 101(d) 

of EESA.