Toxic Mortgage Program Nets Taxpayers $1.7 Billion Nashville
Under the program, investment funds have been set up by private equity firms, in collaboration with the U.S. Treasury, to purchase legacy mortgage securities. Private investors have put in a collective $7.4 billion to while taxpayers have shouldered about double that – a matching $7.4 billion in equity capital, in addition to $14.7 billion of debt capital commitments.
Of the $29.4 billion available, Treasury says the investment funds have drawn down $20.9 billion, or just over 70 percent.
The private investment firms participating in the program – including the likes of AllianceBernstein, BlackRock, and Invesco – are seeing returns ranging from 27 to 75 percent.