Economic Recovery Task Force

The Department of Treasury has issued new TARP Standards and an Interim Final Rule.  These links are available below.

Treasury Notice 2008 Regarding the Troubled Asset Purchase Program and Executive Compensation Standards
http://www.ustreas.gov/initiatives/eesa/docs/Exec%20Comp%20TAAP%20Notice.pdf

Interim Final Rule Regarding TARP Capital Purchase Program
http://www.ustreas.gov/initiatives/eesa/docs/Exec%20Comp%20CPP%20Interim%20Final%20Rule.pdf

The Department of Treasury has issued guidelines and FAQs relating to the TARP Capital Purchase Program. These links are available below.

Application and Guidelines for TARP Capital Purchase Program http://www.treas.gov/press/releases/reports/applicationguidelines.pdf

Process-Related FAQ’s for Capital Purchase Program
http://www.treas.gov/press/releases/reports/faqcpp.pdf

TARP Capital Purchase Program – Summary of Senior Preferred Terms
http://www.treas.gov/press/releases/reports/document5hp1207.pdf

In an effort to help institutions unfreeze lending and spur economic growth, the Federal government—drawing on funds from the recently passed $700 billion bank rescue plan—will commit up to $250 billion to purchase preferred equity shares in financial institutions, with $125 billion of that amount directed at nine large financial institutions.  The remaining $125 billion will be directed to small and midsize institutions that must elect to participate in the program by November 14, 2008.  Allocation decisions will be made thereafter, following consultation with the appropriate banking agency (Treasury Announces TARP Capital Purchase Program Description).  The capital infusion plan was formulated jointly by the U.S. Department of Treasury (the “Treasury”), the Board of Governors of the Federal Reserve System (the “Fed”) and the Federal Deposit Insurance Corporation (the “FDIC”) and is accompanied by efforts to allow the FDIC to temporarily guarantee, for a fee, certain types of new debt called senior unsecured debt issued by banks and thrifts, and for the Fed to finalize a program to serve as a buyer of last resort for commercial paper. (more…)

WaMu.  Lehman Brothers.  Fannie Mae.  Bailout.  At a time when the financial markets are in crisis and the US economy is on the edge, Bracewell & Giuliani LLP commissioned Debtwire to survey 100 fund managers, institutional investors and prop and trading desks regarding their investment strategies in the newly revived distressed debt market (click here for full report). (more…)

On October 3, 2008, President Bush signed into law the Emergency Economic Stabilization Act of 2008 (the “Act”).  Although the Act authorizes and mandates the Treasury Department to address a series of important issues, of key concern to financial institutions is the current status of “mark-to-market” accounting standards.  This issue was addressed both by the Act and also by the Financial Accounting Standards Board (the “FASB”) and the Securities Exchange Commission (the “SEC”) in the days leading up to and right after the signing of the Act into law.  This Alert relates to the current status of the “mark-to-market” discussion. (more…)

Following the passage of the Emergency Economic Stabilization Act of 2008 on October 3rd, Congress has ramped up its oversight of federal regulation and agencies, as well as its investigation into the causes of the current financial crisis. Congress is undoubtedly under significant pressure to show the public that it is “on the case,” so to speak, and the multitude of upcoming hearings illustrates this point. (more…)