Federated aims to create closed-end fund through Public-Private Investment Program
Federated Investors Inc. plans to submit an application to participate in the Department of the Treasury’s Public-Private Investment Program, according to a report in the Pittsburgh Tribune-Review.
Federated Investors Inc. plans to submit an application to participate in the Department of the Treasury’s Public-Private Investment Program, according to a report in the Pittsburgh Tribune-Review.
In an interview following a speech he made in Pittsburgh yesterday, Federated chief executive Christopher Donahue said the firm was submitting an application and hoped to create a closed-end fund for investors, the newspaper reported.
Although no further details were given by Federated today, a spokesman for the firm confirmed the accuracy of the report.
The program, part of the Troubled Asset Relief Program, creates an auction process for banks to get rid of toxic assets including subprime mortgages and mortgage-backed securities.
Under the program, pools of loans would be auctioned off by the Federal Deposit Insurance Corp. and the highest bidder would have access to the program to fund 50% of the equity required. The assets would be managed by private fund firms until liquidated.
The Pittsburgh-based fund firm had $407 billion in assets under management as of Dec. 31.
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