With a view to assist the financial institutions to clean their balance sheets and permitting them to increase credit to help the economy to recover, the Obama administration came forward with a program to buy toxic mortgage-backed securities, naming 9 private investment companies to buy the assets with the assistance of government money.

BlackRock, AllianceBernstein, Oaktree Capital Management, Invesco, Angelo, Gordon & Co., Marathon Asset Management, RLJ Western Asset Management, the TCW Group and Wellington Management Company are the selected companies for the program.

Under the Public Private Investment Program, the Obama administration has plans to invest up to $30 billion to help the nation's banks.

As per reports approximately $2 trillion of the toxic securities are held by U. S. banks.

Pimco, the Newport Beach bond giant was very eager to participate. But, it wasn't included in the 9 partners of the government.

Pimco informed that it had withdrawn its application due to "uncertainties regarding the design and implementation of the program." However, treasury officials did not comment on Pimco's application.

As per the program, up to $10 billion would be raised by private fund managers and in addition, they would tap up to $30 billion from the government to buy troubled securities backed by bundles of mortgages.

The Public Private Investment Program, which was a part of a two-pronged strategy for purchasing around $1 trillion in toxic assets, was declared in March.

The Legacy Loan Program, signifying the use of federal debt guarantees and Treasury money was also included in the original plan to attract investors into buying mortgage loans straight from banks.

However, the Legacy Loan Program is still only a pilot project under the Federal Deposit Insurance Corp.

Analysts said selling these assets should improve the financial strength of banks.