Invesco Ltd. (IVZ) and its WL Ross affiliate announced Monday
they will head a group committing $1 billion to the Treasury
Department's Public Private Investment Program.
Under PPIP, the Treasury plans to partner with private investors
to purchase toxic assets from banks, with leverage guaranteed by
the Federal Deposit Insurance Corp. The program will use up to $100
billion of bank-rescue funds from the Treasury.
Also helping in the Invesco/WL Ross effort is real-estate firm
LeFrank Organization, which will be a co-investor, bond insurer
Assured Guaranty Ltd. (AGO) and American Home Mortgage Services
Inc., the nation's largest servicer of subprime mortgages.
Invesco President and Chief Executive Martin L. Flanagan said
the program "will help stimulate the mortgage market and provide
individual and institutional investors globally with compelling
investment opportunities." He noted the company's fixed-income
investors have had notable success "within the residential and
commercial mortgage-backed securities markets."
WL Ross Chairman and distressed-asset investment giant Wilbur
Ross said putting up to $1 billion into buying mortgages will be
benefit from American Home Mortage Investment Corp.'s (AHMIQ) and
Assured Guaranty Ltd's (AGO) insight into the market.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com