raised for dedicated funds targeting legacy securities. The lending program will address the broken markets for securities tied to residential and commercial real estate and consumer credit. The intention is to incorporate this program into the previously announced TALF. Providing investors greater confidence to purchase legacy assets: as with securitizations backed by new originations of consumer and business credit already included in the TALF, Treasury expects that the provision of leverage through this program will give investors greater confidence to purchase these assets, thus increasing market liquidity. Funding purchase of legacy securities: through this new program, non-recourse loans will be made available to investors to fund purchases of legacy securitization assets. Eligible assets are expected to include certain non-agency residential mortgage backed securities (RMBS) that were originally rated AAA and outstanding commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) that are rated AAA. Working with market participants: borrowers will need to meet eligibility criteria. Haircuts will be determined at a later date and will reflect the riskiness of the assets provided as collateral. Lending rates, minimum loan sizes, and loan durations have not been determined, however, the Federal Reserve is working to ensure that the duration of these loans takes into account the duration of the underlying assets. The Treasury Department will make co-investment/leverage available to partner with private capital providers to immediately support the market for legacy mortgage- and asset-backed securities originated prior to 2009 with a rating of AAA at origination. They will approve up to five asset managers with a demonstrated track record of purchasing legacy assets, however, they may consider adding more depending on the quality of applications received. Managers whose proposals have been approved will have a period of time to raise private capital to target the designated asset classes and will receive matching Treasury funds under the Public–Private Investment Program. Treasury funds will be invested one-for-one on a fully side-by-side basis with these investors. Asset managers will have the ability, if their investment fund structures meet certain guidelines, to subscribe for senior debt for the Public–Private Investment Fund from the Treasury Department in the amount of 50% of total equity capital of the fund. The Treasury Department will consider requests for senior debt for the fund in the amount of 100% of its total equity capital subject to further restrictions. Criticism Economist and Nobel Prize winner Paul Krugman has been very critical of this