This story appeared in Bank Digest.
The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) has issued two new audit reports regarding implementation of the Troubled Asset Relief Program (TARP).
In one report, the Special Inspector General addressed how TARP recipients were complying with the executive compensation found in the Emergency Economic Stabilization Act of 2008. The report noted that since EESA’s enactment in October 2008, the legislation and implementing guidance on executive compensation for TARP recipients have been in flux but that most recipients that received funds under the Capital Purchase Program have made a concerted effort to comply with executive compensation limitations. However, the report noted that some recipients voiced concerns about new restrictions established by the American Recovery and Reinvestment Act (ARRA) and a need for further Treasury Department guidance or regulations to implement the ARRA limitations.
SIGTARP-09-003 at http://www.sigtarp.gov/reports/audit/2009/Despite%20Evolving%20Rules%20on%20Exec%20Comp..._8_19_09.pdf
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This story appeared in Bank Digest.
The Treasury Department has posted the following Commitments to Purchase Financial Instrument and Servicer Participation Agreement for the Home Affordable Modification Program under the Emergency Economic Stabilization Act of 2008. The agreement is the first step servicers need to take to participate in the Home Affordable Modification Program for loans that are not owned, securitized or guaranteed by Fannie Mae or Freddie Mac.
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This story appeared in Bank Digest.
The Emergency Economic Stabilization Act directed the Government Accountability Office to study the role of leverage in the current financial crisis and federal oversight of leverage. The GAO has issued a report in which it reviews:
- how leveraging and deleveraging by financial institutions may have contributed to the crisis;
- regulations adopted by federal financial regulators to limit leverage and how regulators oversee compliance with the regulations;
- and any limitations the current crisis has revealed in regulatory approaches used to restrict leverage and regulatory proposals to address them.
Continue reading "GAO Reports on Leverage at Financial Institutions" »