The Wall Street Journal has the details here. Thanks to the magic of matching funds and leverage provided by the Federal Reserve, this program will have much more than the $1.13 billion raised by participating private funds to buy toxic assets.
The timing couldn’t be better. Housing is looking to be stabilizing (well at least price declines are slowing) so it should be easier to haggle on the price of bonds backed by home loans. When home prices were in free fall, few could say with any certainty whether they should be valued at 5 cents (the vultures) or 80 cents (the banks). Now is should be easier to model potential losses.