On June 24, Herbert Allison, the newly confirmed Treasury Department Assistant Secretary for Financial Stability, testified to the Troubled Asset Relief Program (TARP) Congressional Oversight Panel that the Treasury expects to launch the Public-Private Investment Program (PPIP) “very soon”. Assistant Secretary Allison, who is the new head of the TARP program, said, “We’ve made a great deal of progress. It shouldn’t be long before we announce the first stage in that program.” During a discussion with Elizabeth Warren, the Congressional Oversight Panel’s chair, about whether distressed prices of troubled assets were mainly the result of a lack of liquidity or a reflection of underlying credit issues, Allison stated, “The answer may be provided in part by launching the PPIP program.”
Assistant Secretary Allison also clarified that his comments about the PPIP were meant to apply to the Legacy Securities Program, and not the Legacy Loans Program that was recently put on indefinite hold. When asked to comment on timing of the launch of the Legacy Loans Program, Allison demurred, stating that it would be “presumptuous” for him to speak for the chairperson of the Federal Deposit Insurance Corporation.