Economic Recovery Task Force

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…)

On November 17, 2008, the U.S. Treasury (“UST”) issued guidance for participation in the TARP – Capital Purchase Program (“CPP”) by qualified financial institutions (“QFIs”) that are not “publicly traded,”¹  including (a) any privately-held top-tier bank holding company or top-tier savings and loan holding company that engages solely or predominately in activities permissible for financial holding companies, (b) any privately-held U.S. bank or U.S. savings association organized in a stock form that is not controlled by a holding company, or (c) any U.S. bank or U.S. savings association that is not publicly traded and that is controlled by a privately-held holding company that does not engage solely or predominately in activities that are permitted for financial holding companies.  Under this new guidance, “QFI” does not include any institution that is controlled by a foreign bank or company, mutual depository institutions or entities that have made elections under Subchapter S of the Internal Revenue Code of 1986, as amended (“S Corporations”).  Participation in the CPP by S Corporations and mutual depository institutions still is being considered by the UST. (more…)