Public-Private Investment Program (PPIP)

The Public-Private Investment Program (PPIP) was a U.S. Treasury initiative launched during the financial crisis of 2008 to help stabilize the economy. It aimed to encourage private investors and financial institutions to buy troubled mortgage-backed securities from banks, which were causing instability. By providing government guarantees and funding, PPIP reduced the risk for private investors, making it more attractive to purchase these assets. This helped improve banks’ balance sheets, increase lending, and restore confidence in the financial system, ultimately supporting economic recovery during a turbulent period.