Geithner's PPIP was originally envisioned with two components--one to purchase entire loans and one to purchase securities.

FORBES: PPIP Ready To Pop

Thank goodness for QE2 and all those other government programs with funny names (TARP, PPIP, QE1, etc.) that righted our ship!

FORBES: The Wealth Effect And Unintended Consequences

In addition, the Treasury's Public-Private Investment Program (PPIP) plans to subsidize the purchase of banks' "toxic assets" by hedge funds and other investors.

WSJ: Banks Need Fewer Carrots and More Sticks

He has argued that the PPIP is superior to a bad bank, but the weight of expert opinion, as he surely knows, disagrees.

ECONOMIST: The treasury secretary is torn between politics and policy

Despite rumors that the PPIP will be completely abandoned, the Treasury and funds involved say the Fed's part of the plan is moving forward.

FORBES: PPIP Ready To Pop

Yet even with this large subsidy, PPIP's chance for success is low because of the substantial gulf between the bid and ask prices on the toxic assets, and the reluctance of investors to partner with the government.

WSJ: Banks Need Fewer Carrots and More Sticks