Corporate Finance Law Blog : Corporate Finance Lawyer & Attorney : Davis Wright Tremaine Law Firm

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"Section 7001 of the Act amends EESA Section 111(e) to require any TARP recipient to "permit a separate shareholder vote to approve the compensation of executives, as disclosed pursuant to the compensation disclosure rules of the Commission," during the period in which any obligation arising from financial assistance provided under the TARP remains outstanding. The Act does not specify an effective date for this provision. In his letter dated February 20, 2009 to Chairman Schapiro, Chairman Dodd stated his view that this provision became effective on February 17, 2009 and applies to preliminary or definitive proxy statements (other than definitive proxy statements which relate to preliminary proxy statements filed on or before February 17, 2009) filed with the Commission after February 17, 2009."

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"Today, the Treasury Department is issuing a new set of guidelines on executive pay for financial institutions that are receiving government assistance to address our current financial crisis.  These measures are designed to ensure that public funds are directed only toward the public interest in strengthening our economy by stabilizing our financial system and not toward inappropriate private gain. The measures announced today are designed to ensure that the compensation of top executives in the financial community is closely aligned not only with the interests of shareholders and financial institutions, but with the taxpayers providing assistance to those companies. "

For the press release, see here.

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 "On October 3, 2008, the President signed the Emergency Economic Stabilization Act of 2008 (EESA), which established the Troubled Asset Relief Program (TARP). The United States Department of Treasury is responsible for establishing and administering the TARP. As part of the TARP, Treasury established the Capital Purchase Program (CPP) to provide funding to eligible financial institutions. To participate, a financial institution that receives preliminary approval for the CPP must enter into an agreement to issue certain securities to the Treasury. For additional information regarding the EESA, the TARP, and the requirements for participation in the CPP, seehttp://www.treasury.gov/initiatives/eesa/."

More here.

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By Laura A. Baumann

On Oct. 14, 2008, the United States Department of Treasury announced the Troubled Asset Relief Program, or TARP Program, which is one of several recent government initiatives to improve the strength of financial institutions and enhance market liquidity. We summarized the highlights of the program in an advisory bulletin in October. On Nov. 17, 2008, the Treasury released the term sheet and frequently asked questions for certain privately held financial institutions applying for the TARP Program. This bulletin will briefly summarize the recent developments with respect to the TARP Program. Continue reading...

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By Laura A. Baumann

On Oct. 14, 2008, the U.S. Department of Treasury announced the Troubled Asset Relief Program, or TARP Program, which is one of several recent government initiatives to improve the strength of financial institutions and enhance market liquidity. Under the TARP Program, the Treasury will purchase up to $250 billion in Senior Preferred stock on standardized terms more fully described in the TARP Program's term sheet. This bulletin will briefly summarize the major aspects of the TARP Program. Continue reading...

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