Economic Recovery Task Force

On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act. While the Act’s goals are primarily to create jobs and restore economic growth, it also contains a number of important COBRA revisions that will apply to every employer that is subject to COBRA, effective immediately.  (more…)

On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (the “Act”), Title VII of which imposes new and more stringent limits on executive compensation for participants in the United Stated Department of Treasury (“Treasury”) Troubled Assets Relief Program (“TARP”) under the Emergency Economic Stabilization Act of 2008 (the “EESA”).  These new restrictions apply retroactively and prospectively, to existing and new participants in the TARP Capital Purchase Program, for so long as the TARP participant retains any obligation arising from the financial assistance it received under TARP (the “Restricted Period”). Once the TARP participant has redeemed its preferred stock from Treasury, the restrictions go away — importantly, the restrictions do not apply during any period for which the federal government only holds warrants to purchase common stock of a TARP participant. In addition, Title VII of the Act permits TARP participants, with the approval of the Secretary of the Treasury (the “Secretary”) and the applicable federal bank regulatory agency, to redeem its preferred stock at any time, notwithstanding the original restrictions on redemption set forth in the EESA. (more…)

The economic stimulus bill to be signed by President Obama today will provide $7.2 billion for broadband deployment. Because the purpose of the law is to provide early stimulus to the economy, grants will be awarded on an accelerated schedule, and should be of interest to those in the broadband and telecommunications industries, utilities, school districts, local governments, nonprofit organizations and firms that finance broadband ventures. (more…)

On Tuesday, February 10, 2009, U.S. Treasury Secretary, Timothy Geithner, unveiled a new plan (“Plan”) designed to address the U.S. credit crisis and restore stability to the nation’s financial system. While many details are still to be released, the Plan will deliver as much as $2 trillion to the U.S. financial markets through the following four key elements: (more…)