Financial Crisis News Center

Initial Closing of PPIF Announced

This story appeared in Bank Digest.

The Treasury Department has announced that RLJ Western Asset Management, LP, has completed an initial closing of a Public-Private Investment Fund (PPIF) established under the Legacy Securities Public-Private Investment Program (PPIP). RLJ Western Asset Management, LP, is a minority-owned partnership between The RLJ Companies, LLC and Western Asset Management. To date, seven PPIFs have completed initial closings on approximately $4.09 billion of private sector equity capital which has been matched 100 percent by the Treasury, representing $8.18 billion of total equity capital. The Treasury has also provided $8.18 billion of debt capital, representing $16.36 billion of total purchasing power for all PPIFs.

Treasury Releases Latest Capital Purchase Program Transactions

This story appeared in Bank Digest.

The Treasury Department has released the latest transactions completed under its Capital Purchase Program. As of October 30, 2009, the Treasury has invested $204,675,847,320 in 748 financial institutions.

“Too Big To Fail” Plan Highlighted in Treasury Official's Remarks

This story appeared in Bank Digest.

In remarks before the Remarks to ALI-ABA Conference on Life Insurance, in Washington, D.C., on Nov. 5, 2009, Assistant Treasury Secretary Michael S. Barr discussed the Obama Administration's comprehensive plan for regulatory reform and focus in particular on the problem that has come to be known as “too big to fail.”

COP Report: Asset Guarantees Had Calming Effect, But Other Concerns Remain

In its November 2009 monthly report, the Congressional Oversight Panel (COP) studied government-backed guarantees under the Troubled Asset Relief Program.  The COP stated in the report that the asset guarantees from the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation helped calm panic in financial markets, with minimal cost to taxpayers to date. The report raised concerns about moral hazard created by the guarantees and recommended greater disclosure by the Treasury Department with regard to government-guaranteed assets of Citigroup Inc. COP Chair Elizabeth Warren commented on these issues in an interview on CNBC.

Treasury Announces Initial Closing of PPIF

This story appeared in Bank Digest.

The Treasury Department has announced that on Oct. 30, 2009, Angelo, Gordon & Co., L.P., and GE Capital Real Estate completed an initial closing of a Public-Private Investment Fund (PPIF) established under the Legacy Securities Public-Private Investment Program (PPIP). To date, six PPIFs have completed initial closings on approximately $3.58 billion of private sector equity capital, which has been matched 100 percent by Treasury, representing $7.17 billion of total equity capital. Treasury has also provided $7.17 billion of debt capital, representing $14.34 billion of total purchasing power.

http://www.ustreas.gov/press/releases/2009113174017454.htm

Treasury Releases Latest Capital Purchase Program Transactions

This story appeared in Bank Digest.

The Treasury Department has released the latest transactions completed under its Capital Purchase Program. The report indicated that, to date, the Treasury has received  $70,805,427,000 in capital repayments.

http://www.financialstability.gov/docs/transaction-reports/11-3-09%20Transactions%20Report%20as%20of%2010-30-09.pdf

Treasury Assistant Secretary Krueger Notes Improved Economic Conditions

This story appeared in Bank Digest.

Alan B. Krueger, Treasury Department Assistant Secretary for Economic Policy & Chief Economist, notes that economic conditions improved in the third quarter of 2009. In a statement issued for the Treasury Borrowing Advisory Committee of the Securities Industry and Financial Markets Association, Krueger said, “[T]he economy is starting to recover from what has been the most severe recession of the post-war period. It will take time for the pickup in economic activity to translate into renewed hiring but labor market conditions should improve with sustained and solid economic growth.”

http://www.ustreas.gov/press/releases/tg342.htm

Fed Lets Temporary Reg. W Exemption Expire

This story appeared in Bank Digest.

The Federal Reserve Board has announced that a temporary exemption to the limitations in Section 23A of the Federal Reserve Act, instituted as part of the response to the financial crisis expired, as scheduled, on Oct. 30, 2009. The exemption, which was subject to various conditions to promote safety and soundness, allowed all insured depository institutions to provide liquidity to their affiliates for assets typically funded in the tri-party repo market. It was originally approved on Sept. 14, 2008, and was extended on Jan. 30, 2009. Since the approval of the extension in January, the functioning of the tri-party repo market has improved considerably.

http://www.federalreserve.gov/newsevents/press/bcreg/20091030b.htm

Treasury Releases Latest Capital Purchase Program Transactions

This story appeared in Bank Digest.

The Treasury Department has released the latest transactions completed under its Capital Purchase Program. The report indicated that, to date, the Treasury has received $70,805,427,000 in capital repayments.

http://www.financialstability.gov/docs/transaction-reports/10-30-09%20Transactions%20Report%20as%20of%2010-28-09.pdf

HAMP Servicer Agreements Released

This story appeared in Bank Digest.

The Treasury Department has posted the following servicer participation agreements for the Home Affordable Modification Program (HAMP). These agreements are the first step servicers need to take to participate in HAMP for loans that are not owned, securitized or guaranteed by Fannie Mae or Freddie Mac.