New Federal Programs Support the Banking System: Expect Mandatory Preferred and Mandatory Debt Issuance

more+
less-

Today, in a joint statement of support for the nation’s banking institutions, the U.S. Department of the Treasury (Treasury), Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency and Office of Thrift Supervision announced plans to provide continued support to, and encourage private capital investment in, financial institutions. The statement notes that the major banking institutions have capital in excess of that required to be considered “well capitalized,” and participation in the new programs will ensure sufficient capital for the institutions to “support economic recovery” and “provide credit necessary for the stabilization and recovery of the U.S. economy.” The plan includes at least two components, with detailed information to be announced later this week. First, Treasury’s new capital assistance program will be detailed on February 25th. Then, on February 27th the FDIC Board will consider amendments to its temporary liquidity guarantee program’s debt guarantee program.

Below please find a brief overview of today’s announcements, including what we will be looking for as program details are released. For more information about the government intervention efforts in response to the financial crisis, please see our Client Alerts and resources at Financial Crisis Legal Updates and News.

Please see full bulletin for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

more+
less-

Morrison & Foerster LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×