The U.S. Treasury Department has suspended the toxic-asset fund managed by TCW Group as part of the federal government's Public-Private Investment Program (PPIP).
The Treasury's decision was sparked by a ‘key person event’ at TCW, Treasury spokesperson Meg Reilly told Reuters in an e-mail. Last week, the company fired its chief investment officer, Jeffery Gundlach. TCW then purchased Metroplitan West Asset Management LLC to assist in managing the company's assets.
‘Upon the occurrence of a key person event, the [public-private investment fund (PPIF)] cannot make investments or dispositions (other than to avoid a material loss),’ Reilly's e-mail said. ‘Treasury is currently evaluating its options as an equity and debt investor in the PPIF.’
SOURCE: Reuters