The Federal Reserve Bank of New York said it was a "good start;" however some in the CRE industry are disappointed at the level of participation. "I would be feeling much better right now if it had been closer to $10 billion or $15 billion," one locally-based private equity provider tells GlobeSt.com. "There is a $200-billion ceiling after all." Also, this person adds, the results do not bode well for the Public Private Investment Fund--the details of which Treasury Secretary Timothy Geithner is set to reveal shortly.

The Federal Reserve Bank has pledged to support up to $200 billion in this program--and could conceivably extend that to $1 trillion. It supports the issuance of asset-backed securities collateralized by student loans, auto loans, credit card loans and loans guaranteed by the Small Business Administration. In February it was extended to include purchases of AAA-rated CMBS. On Thursday, March 18, the Federal Reserve expanded the types of collateral even further, including securities backed by floorplan loans, vehicle fleet leases, loans and leases for business equipment and those backed by mortgage servicing advances.

There are any number of reasons why participation was low. The subscription period--March 17 through March 19--occurred during the public uproar over the AIG bonuses. It also may be that borrowers are holding back to see how the first round goes.