The Treasury Department, facing criticism over its bank-rescue program, said it may allow a broader group of private investors to purchase toxic securities.
The Treasury said it may select more than five asset managers to coinvest with the government to purchase distressed real-estate investments. And it may allow firms with less than $10 billion under management to qualify for the program.
Some on Wall Street, primarily hedge funds, have criticized the Treasury’s program as limiting access to a select few such as BlackRock Inc. (BLK) and Goldman Sachs (GS).
On Monday, the Treasury said a proposal won’t necessarily be disqualified if firms don’t meet all the criteria. The Treasury added that it is particularly interested in program participation by small, minority- or woman-owned businesses. [via WSJ]