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The leverage in the deal leads the private investors to overpay for the assets. They put in only $1 for each $13 put in by the government in the form of non-recourse (read you don't have to repay) loans and matching equity. The private investor gets half of the upside but their downside is limited to their $1 investment. It's the equivalent of buying an option on the upside value of the assets from the government. Heads I win, tails you lose. Thank the Lord that this plan fizzled before the FDIC was put on the hook for $500 billion, as originally planned!