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Treasury Extends Fund Deadline

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Insurers that want to team with the federal government to buy illiquid securities from other financial institutions have two more weeks to sign up for the program.

The U.S. Treasury Department has pushed the application deadline back to April 24, and it says it will relax the original size requirement.

When the department first announced the Legacy Securities Program, it said companies applying to participate had to have at least $10 billion in assets.

Fund managers are supposed to raise half of the cash for the securities funds, and the Treasury Department will raise the other half.

The funds will buy mortgage-backed securities and asset-backed securities originated before 2009 that had an AAA rating when they were created, officials said when they unveiled the program.

The Treasury Department also is setting up a second part of the program that will use non-recourse loans from the Federal Reserve to help eligible borrowers buy troubled securities, officials said.


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