Treasury's model is public private model. This will help to establish a realistic market price for the illiquid assets. Fed is on the hook for 85% of investment while the private investor is on the hook for 15%. It is better than FED being on the hook for 100% of investment as in the case of the insurance giant.
Market has reacted to this positively. Several institutions have expressed interest in this.
By removing troubled assets from banks balance sheets, banks will start lending more freely.
This approach is promising. Off course, time will tell the outcome.