Ross also said he bought $100 million in Ford Motor A-4 auto loans at an auction with 90 percent financing through the Fed's TALF loan mechanism.
Invesco, Ross to Invest $1 Billion in Toxic Assets
Invesco and Wilbur Ross said they will lead a group committing $1 billion to buy distressed bank assets through the government's Public-Private Investment Program.
PPIP is a key part of the Obama administration's efforts to shore up the banking industry by helping lenders sell toxic assets that have have fallen in value after markets seized up.
"The Public-Private Investment Program will help stimulate the mortgage market and provide individual and institutional investors globally with compelling investment opportunities in the legacy securities and legacy loan programs,'' Invesco Chief Executive Martin Flanagan said in a statement on Monday.
The investor group includes Invesco, a fund manager with $159 billion in fixed-income assets; WL Ross, an investment fund run by Wilbur Ross, who made his fortune investing in distressed companies and assets; and the LeFrak Organization, a leading real estate developer.
Also participating are bond insurer Assured Guaranty and American Home Mortgage Servicing, two companies controlled by Ross, as well as three small brokers: Muriel Siebert & Co, Williams Capital Group and Jackson Securities.
Under PPIP, approved investors will be allowed to buy banks' distressed assets, with a co-investment by the U.S. Treasury and special financing backed by the U.S. Federal Deposit Insurance Corp.
Public advocates have questioned whether the program will simply enrich big investors, while a number of fund managers have backed away from the program, saying any benefits are outweighed by uncertainty over how profits will be treated.
—Reuters contributed to this report.