Geithner: PPIP Could Get Going By July 1

WASHINGTON — The Public Private Investment Program, which includes a component addressing legacy loans and one addressing toxic securities, could begin by July 1, Treasury Secretary Timothy Geithner said yesterday.

“Working with the Federal Reserve and the Federal Deposit Insurance Corp., we expect these programs to begin operating over the next six weeks,” he said during testimony before the Senate Banking Committee.

In addition, Geithner told lawmakers that the Obama administration is continuing to explore new ways to improve its programs to help repair the financial system, including an extension of the “deadline for small banks to form a holding company for the purposes of Capital Purchase Program.”

The Treasury secretary also said he is looking into ways to improve the assessment of the success of the programs in order to gauge whether additional or different steps are needed to help stabilize the financial system.

— Market News International

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