Source: Huffington Post
Remember the Public-Private Investment Program (PPIP)? The Treasury Department unveiled the program in March and intended it as a way to help banks unload hard-to-sell (read: often toxic) mortgage securities. In short, private investors partnered with the government to get bad loans off the banks' books -- and everyone, including taxpayers, was supposed to come out ahead on the proceeds of the asset sales.
But, as Bloomberg reports this morning, some of the nation's largest banks have actually bought more risky home loans instead of getting them off their balance sheets.
But, as In other words, the program that was supposed to help banks dispose of these toxic assets instead made those assets so marketable that banks bought more -- which has pushed Wall Street's titans to even greater exposure to the stalled housing market. The banks apparently decided that the government's entry into the mortgage security market was simply a guaranteed money-making opportunity.
Per Bloomberg's figures, Bank of America, Citigroup, Morgan Stanley and Goldman Sachs added $2.74 billion of this kind of mortgage debt since March. The value of the debt was up 13 percent from the second quarter. Here's more: READ MORE ....
