Treasury Takes Action On PPIP Fund Manager

Posted by Orb Staff on December 09, 2009 No Comments
Categories : Residential Mortgage

The U.S. Treasury Department has suspended the toxic-asset fund managed by TCW Group as part of the federal government's Public-Private Investment Program (PPIP).

The Treasury's decision was sparked by a ‘key person event’ at TCW, Treasury spokesperson Meg Reilly told Reuters in an e-mail. Last week, the company fired its chief investment officer, Jeffery Gundlach. TCW then purchased Metroplitan West Asset Management LLC to assist in managing the company's assets.

‘Upon the occurrence of a key person event, the [public-private investment fund (PPIF)] cannot make investments or dispositions (other than to avoid a material loss),’ Reilly's e-mail said. ‘Treasury is currently evaluating its options as an equity and debt investor in the PPIF.’

SOURCE: Reuters

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