Reichwald Quoted in BusinessWeek on the Treasury Department's Public-Private Investment Program
"Toxic Asset Plan: Tricky Times Ahead"BusinessWeek
March 25, 2009 - Manatt partner Harold P. Reichwald is quoted in the March 25 BusinessWeek article, "Toxic Asset Plan: Tricky Times Ahead." The article explores the much-touted Public-Private Investment Program (PPIP), which many believed would solve one of the most difficult problems of the financial crisis - reasonably pricing distressed assets and getting them off banks' balance sheets. However, according to the article, even though the plan was initially well-received on Wall Street, many critics do not believe the PPIP will get credit flowing since there remains uncertainty about whether Congress will take profits back at some point, coupled with general mistrust toward the firms who will be selected to execute the PPIP. Commenting on this uncertainty, Reichwald stated "We saw what happened with executive comp rules [in the AIG controversy]. As a manager, how do I account for that risk?"
Read the article here.
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