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.