Wednesday, July 8, 2009

Government Public-Private Investment Program Includes Women, Blacks, Puerto Ricans and Eskimos

Political correctness has come to the economic bailout.

The Treasury Department, the Federal Reserve, and the FDIC announced today the firms it has pre-qualified for the Legacy Securities Public-Private Investment Program.

Under the Legacy Securities Program, Treasury will invest up to $30 billion of equity and debt in PPIPs established with private sector fund managers and private investors for the purpose of purchasing legacy securities.

Initially, the Legacy Securities PPIP will participate in the market for commercial mortgage-backed securities and non-agency residential mortgage-backed securities. To qualify, for purchase by a Legacy Securities PPIP, these securities must have been issued prior to 2009 and have originally been rated AAA -- or an equivalent rating by two or more nationally recognized statistical rating organizations -- without ratings enhancement and must be secured directly by the actual mortgage loans, leases, or other assets.

Treasury named two groups of pre-qualified fund managers. The first group are the elite insiders. They are:

· AllianceBernstein, LP and its sub-advisors Greenfield Partners, LLC and Rialto Capital Management, LLC;
· Angelo, Gordon & Co., L.P. and GE Capital Real Estate;
· BlackRock, Inc.;
· Invesco Ltd.;
· Marathon Asset Management, L.P.;
· Oaktree Capital Management, L.P.;
· RLJ Western Asset Management, LP.;
· The TCW Group, Inc.; and
· Wellington Management Company, LLP.

The second group pre-qualified by Treasury were done so, according to the Treasury, "to ensure robust participation by both small and large firms...criteria were evaluated on a holistic basis and failure to meet any one criterion did not necessarily disqualify an application. "

These managers are:

· Advent Capital Management, LLC;
· Altura Capital Group LLC;
· Arctic Slope Regional Corporation;
· Atlanta Life Financial Group, through its subsidiary Jackson Securities LLC;
· Blaylock Robert Van, L.L.C.;
· CastleOak Securities, LP;
· Muriel Siebert & Co., Inc.;
· Park Madison Partners LLC;
· The Williams Capital Group, L.P.; and
· Utendahl Capital Management.

This group consits of all women firms, Puerto Rican firms, black firms, and what appears to be a group of Inupiat Eskimos.

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