Financial Crisis News Center

Additional Initial Closing of PPIF

This story appeared in Bank Digest.

The Treasury Department has announced that Oaktree Capital Management, L.P., has completed an initial closing of a Public-Private Investment Fund (PPIF) established under the Legacy Securities Public-Private Investment Program (PPIP). All nine pre-qualified PPIP fund managers have now completed an initial closing. Oaktree has partnered on the PPIF with Arctic Slope Regional Corporation, a small and minority-owned business based in Alaska. To date, the PPIFs have completed initial and subsequent closings on approximately $6.0 billion of private sector equity capital which has been matched 100 percent by the Treasury Department, representing $12.0 billion of total equity capital. The Treasury Department has also provided $12.0 billion of debt capital, representing $24.0 billion of total purchasing power.

FSOB Meeting Minutes Released

This story appeared in Bank Digest.

The Treasury Department has released the minutes of the Financial Stability Oversight Board meeting held Oct. 28, 2009.

FSOB Quarterly Report Published

This story appeared in Bank Digest.

The Financial Stability Oversight Board has issued its fourth quarterly report to Congress, which covers the period from July 1, 2009, through Sept. 30, 2009. According to the report, “the accumulated effects of Treasury's actions under TARP contributed significantly to improved conditions in many financial markets during the quarterly period.”

FSOB Meeting Minutes and Report Released

This story appeared in Bank Digest.

The Treasury Department has released the minutes of the Financial Stability Oversight Board (FSOB) meeting held Aug. 31, 2009. In addition, the FSOB released its quarterly report for the third quarter 2009. The report is required by Section 104(g) of the Emergency Economic Stabilization Act of 2008 and covers the period from March 31, 2009, through the quarter ending June 30, 2009. The report: highlights the key oversight activities and administrative actions taken by the FSOB during the quarterly period; provides the FSOB's evaluation of the effects of the policies and programs implemented by the Treasury Department under the Troubled Assets Relief Program (TARP); and provides a more detailed description of the programs, policies and administrative actions taken, and financial commitments entered into, by the Treasury under the TARP.

SEC Chair Outlines Efforts Promoting Sound Corporate Governance in Line with Global Principles

By James Hamilton, J.D., LL.M., Principal Analyst, CCH Federal Securities Law Reporter; and CCH Derivatives Regulation Law Reporter.

Noting that poor corporate governance contributed to the current financial crisis, SEC Chair Mary Schapiro detailed steps the Commission is taking to enhance transparency and accountability in the governance of public companies. In her keynote address at the Transatlantic Corporate Governance conference, the SEC official said that the Commission is working to improve the accountability of corporate managers to the owners of the company. She emphasized that the SEC is operating with an invigorating sense of urgency.

G-20 Finance Ministers Endorse Reform of Executive Compensation in Alingment with Long-Term Value Creation

By James Hamilton, J.D., LL.M., Principal Analyst, CCH Federal Securities Law Reporter; and CCH Derivatives Regulation Law Reporter.

In preparation for the upcoming G-20 summit in Pittsburgh, the G-20 Finance Ministers have issued a communiqué calling for a framework on corporate governance and executive compensation practices designed to prevent short-term risk taking and mitigate systemic risk. The new executive compensation regime should be globally consistent and build on and strengthen the application of the Financial Stability Board principles.

Financial Stability Oversight Board Minutes Released

This story appeared in Bank Digest.

The Financial Stability Oversight Board has released the minutes of its June 25, 2009, meeting. Discussion during the meeting focused on the executive compensation and corporate governance regulations recently issued by the Treasury Department under: the Troubled Asset Relief Program; the Capital Purchase Program; the Public-Private Investment Partnership program; and developments in the financial and housing markets.

Minutes at http://www.financialstability.gov/docs/FSOB/FINSOB-Minutes-062509.pdf

Financial Stability Oversight Board's Third Quarterly Report Issued

This story appeared in Bank Digest.

The Financial Stability Oversight Board has released its third quarterly report. The report is required by Section 104(g) of the Emergency Economic Stabilization.

Act of 2008 and covers the period from March 31, 2009, through the quarter ending June 30, 2009. The report highlights the key oversight activities and administrative actions taken by the FSOB during the quarterly period; provides the FSOB's evaluation of the effects of the policies and programs implemented by the Treasury Department under the Troubled Assets Relief Program (TARP); and provides a more detailed description of the programs, policies and administrative actions taken, and financial commitments entered into, by the Treasury under the TARP.

Report at http://www.financialstability.gov/docs/FSOB/FINSOB-Qrtly-Rpt-063009.pdf

Latest FSOB Minutes Released

This story appeared in Bank Digest.

The Financial Stability Oversight Board (FSOB) has released the minutes from its meeting held on May 28, 2009. Discussion during the meeting focused on the Supervisory Capital Assessment Program (SCAP), the Capital Assistance Program (CAP), the Term Asset-Backed Securities Loan Facility (TALF), the Home Affordable Modification Program (HAMP), and the Automotive Industry Financing Program (AIFP).

In regards to the SCAP, the Board discussed the reviewed the status of the efforts of all institutions subject to the SCAP in raising capital from private sources, issuing nongovernmental guaranteed debt, and taking other steps to improve their capital position.

Financial Stability Oversight Board Minutes Released

This story appeared in Bank Digest.

The Financial Stability Oversight Board has released the minutes for its April 6, 2009, meeting. Among the topics discussed were: recent initiatives and actions taken by the Treasury Department under the Troubled Asset Relief Program (TARP), the current level of funding of TARP programs, and the administrative activities of the Office of Financial Stability; the terms, conditions and timing of the key components of the Public-Private Investment Partnership; the status of, and recent developments concerning, the Term Asset-Backed Securities Loan Facility; and the recent actions taken under the Automotive Industry Financing Program to assist the domestic automotive industry in becoming financially viable.   http://www.financialstability.gov/docs/FSOB/FINSOB-Minutes-040609.pdf