UPDATE-1-US Treasury to say 2 more firms to buy toxic assets

WASHINGTON, Nov 3 (Reuters) - The U.S. Treasury Department on Tuesday announced two more funds have met requirements to get government financing that will let them begin purchases of banks' so-called toxic assets. Treasury said Angelo, Gordon & Co., L.P., and GE Capital Real Estate have raised enough capital to participate in the Public-Private Investment Program. The six funds approved so far in the program have raised private sector capital of $3.58 billion, which has been matched 100 percent by Treasury, for total equity of $7.17 billion, the Treasury said. In addition, they have received Treasury debt financing of $7.17 billion for total purchasing power of $14.34 billion. Small, minority, and women-owned businesses that are partnering with Angelo, Gordon and GE Capital include CastleOak Securities L.P. and Park Madison Partners LLC, Treasury said. Treasury said it expects to soon announce initial closings for the remaining three funds wishing to take part in the Public-Private Investment Fund designed to clean up bank balance sheets. Following an initial closing, each fund will have an opportunity to raise additional funds over the following six months and receive matching Treasury equity and debt financing. the department said. The maximum possible Treasury equity and debt investment in all public-private funds is $30 billion. Including $10 billion in private investor capital, this would allow total purchasing power of up to $40 billion, the department said. (Reporting by Nancy Waitz; Editing by Andrew Hay) Keywords: USA TREASURY/PPIF ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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