Reuters: Regulatory News: Invesco winds up financial crisis-era fund

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Invesco winds up financial crisis-era fund Apr 3rd 2012, 19:03 WASHINGTON, April 3 | Tue Apr 3, 2012 3:03pm EDT WASHINGTON, April 3 (Reuters) - Another of the public-private investment funds set up amid the 2007-09 financial crisis to take bad assets off banks' books said on Tuesday it was winding up operations. Invesco Ltd said it has returned substantially all the proceeds, at a profit, from its Invesco Mortgage Recovery Fund that it jointly owned with the Treasury Department. Treasury will receive $221.2 million including $3.4 million in proceeds from warrant sales, in addition to a previously distributed $497.9 million. That amounts to a rate of return of 18.3 percent since the fund's beginning in October 2009, Invesco said. In March, the fund repaid the last of the $1.2 billion in loans that Treasury put up over the life of the fund. The Public-Private Investment Program, or PPIP, was announced in March 2009 by the Treasury department as a way to provide liquidity that could be used to soak up so-called "toxic assets" from the sheets of financial institutions that were struggling at the time. Essentially, private investors partnered with the government, using some funds from the Troubled Asset relief Program, to take bad assets off banks' books. As well as Invesco, UST/TCW Senior Mortgage Securities Fund L.P. was wound up and liquidated during the first quarter of 2010. The Treasury Department said that it made a profit of $20.1 million on its $156.3 million equity investment in UST/TCW Senior Mortgage Securities Fund. Seven out of the nine PPIP funds are still actively investing so the Treasury Department says it cannot estimate its final return on the program. To date, Treasury has disbursed about $18 billion for PPIP and has recovered $4 billion through repayments, gains and interest. Link this Share this Digg this Email Reprints

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