Federal regulators took another step Wednesday toward launching a long-awaited program that would allow fund managers and private investors to purchase troubled securities from banks.

The Treasury Department said it had selected nine fund managers, including BlackRock Inc., Invesco Ltd. and Wellington Management Co., and said all had been cleared of conflicts of interest.

Treasury plans to divide $30 billion equally among the fund managers.

Eligible securities must have been issued prior to 2009, originally rated triple-A and secured directly by actual mortgage loans, leases or other assets.

Each fund manager will have up to 12 weeks to raise at least $500 million of capital from private investors for a Public Private Investment

Fund, which will be matched by Treasury.

Each fund manager will also have to invest a minimum of $20 million of firm capital into the PPIF.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.