Category — Troubled Asset Relief Program (TARP)

Pursuant to authority granted under Section 111 of the Emergency Economic Stabilization Act of 2008 (EESA), the U.S. Treasury Department has announced a voluntary Capital Purchase Program (CPP) to encourage eligible U.S. financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy.  Under the CPP, Treasury will purchase senior preferred stock (along with common stock warrants for publicly traded institutions and preferred stock warrants for non-publicly traded institutions) from participating financial institutions.  [Read more →]

On November 17, 2008, the Treasury released the term sheet and related FAQs for non-publicly traded financial institutions participating in the TARP Capital Purchase Program (“CPP”).   This term sheet applies to (1) non-publicly traded Bank Holding Companies and Savings and Loan Holding Companies, (2) U.S. banks and U.S. savings associations that are neither publicly traded nor controlled by a Bank Holding Company or Savings and Loan Holding Company, and (3) U.S. banks and U.S. savings associations that are not publicly traded and are controlled by a Savings and Loan Holding Company that is not publicly traded and does not engage solely or predominately in activities that are permitted for financial holding companies.  [Read more →]

On October 31, 2008, the U.S. Department of the Treasury (the “Treasury”) provided additional information for publicly traded financial institutions seeking to participate in the Troubled Assets Relief Program (“TARP”) Capital Purchase Program (the “Program”) as authorized under the Emergency Economic Stabilization Act of 2008 (the “Act”). Specifically, the Treasury published form documentation for the issuance of preferred stock and warrants by such publicly traded financial institutions. [Read more →]

In an unprecedented move, the United States Department of the Treasury (“Treasury”) announced the implementation of a Capital Purchase Program (“CPP” or “Program”) with the goal of encouraging U.S. financial institutions “to be build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy.”  [Read more →]

The Emergency Economic Stabilization Act of 2008 (the “Act’) was signed in to law on October 3, 2008. This legislation is the most significant economic intervention by the United States Government in the nation’s financial services industry since the Great Depression. The primary component of the legislation is the Troubled Asset Relief Program (“TARP”) which authorizes the Secretary (the “Secretary”) of the U.S. [Read more →]