Addressing one of the roots of the financial crisis, the hard-to-value mortgages and asset-backed securities on banks' balance sheets, the program sought to jump-start the market for these assets. Under the program the government both invested alongside private investors and provided them cheap financing in the hope that with the extra help, the private investors would reach a price at which they're willing to buy and banks are willing to sell.

The idea was unveiled in March 2009, but did not get off the ground for months. The part of the program to buy banks’ troubled loans has been indefinitely delayed. On July 8, 2009, the Treasury announced that it had selected nine fund managers to participate in the other part of the program, to buy toxic securities backed by mortgages.

Treasury originally set aside as much as $100 billion for the program, but then said that it expected to use only up to $30 billion. It then reduced the maximum amount to $22.4 billion.

Go to list of all initiatives and programs

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