Economic Crisis Resource Center > Troutman Sanders LLP

Legacy Securities Program

by Troutman Sanders LLP

On March 23, 2009, the Treasury – in conjunction with the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve – announced the initial details of its Public-Private Investment Program (PPIP) which is designed to (i) remove toxic real estate loans and securities from the balance sheets of U.S. depositary institutions, which include banks and thrifts (Participant Banks), (ii) rejuvenate real estate credit markets and (iii) restart the real estate loan securitization market. PPIP is divided into two programs, (a) the Legacy Loans Program dealing with residential and commercial real estate loans held by Participant Banks and (b) the Legacy Securities Program dealing with commercial mortgage backed securities (CMBS) and residential mortgage backed securities (RMBS).

This Advisory addresses the Legacy Securities Program.  For more information regarding the Legacy Loans Program, please refer to our Advisory that can be found here.

The following links lead to more information regarding this program:

Equity Investment in the Legacy Securities Program

Debt Financing Available to Private Vehicles

Governance of Private Vehicles

A Sample Legacy Securities Program Investment

Process for Application for Private Fund Managers

Questions Raised by the Legacy Securities Program

Troutman Sanders’ Role

Troutman Sanders has already assembled an experienced multi-disciplinary team to guide clients through the Legacy Securities Program, as well as other programs established as part of Treasury’s Financial Stability Plan.   We look forward to assisting existing clients and new clients with opportunities that will be created through the new Public-Private Investment Program. 

Please continue to check our website, as we will continue to follow developments related to Legacy Securities Program and to update this advisory with additional relevant information as soon as it is released.  If you have any questions or would like to contact a member of our Legacy Securities Program team, please feel free to call any of the Troutman Sanders lawyers listed above.

CONTACT

Michael “Mike” A. Leichtling
212.704.6257

Jake Lutz
804.697.1490

Miles M. Borden
212.704.6161

Anthony D. Greene
212.704.6194