PPIP Loses Momentum

06-30-2009 | Source: Total Securitization

The much-touted Public-Private Investment Program has lost its momentum, as large banks and investors have been reluctant to participate, The Wall Street Journal reports. Large banks reportedly have shunned the program because they do not want to offer their bad assets at fire-sale prices, thus causing them to record even greater losses, while investors fear criticism for profiting from the woes of others. The big losers could be small banks, which cannot easily raise capital independently and were looking forward to PPIP to help them clear their balance sheets of bad loans and toxic assets.

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