On April 21, the U.S. Treasury Department provided an update to its frequently asked questions document concerning the Legacy Securities Public-Private Investment Program (PPIP). The Treasury answered the question “Will the Legacy Securities PPIFs (Public-Private Investment Funds) be subject to executive compensation restrictions?” with the following statement: “Treasury developed the PPIP to leverage private sector resources and expertise for purchasing legacy assets and the TALF [Term Asset-Backed Securities Loan Facility] with the Federal Reserve for funding legacy assets. Executive compensation restrictions will not apply to asset managers or private investors provided the PPIFs are structured such that the asset managers themselves and their employees are not employees of or controlling investors in the PPIFs, and other investors are purely passive.”  

Click here for the updated FAQ regarding the Legacy Securities PPIP program.