On January 9, House Financial Services Committee Chairman Barney Frank (D-MA) introduced H.R. 384, known as the Troubled Asset Relief Program (TARP) Reform and Accountability Act of 2009. The bill would amend the TARP provisions of the Emergency Economic Stabilization Act of 2008 to increase transparency and accountability and to require the U.S. Treasury Department to act to alleviate foreclosures. The bill’s original text would have established conditions to the release of the next $350 billion in TARP funds; however, the Senate voted on January 15 to release the second $350 billion of TARP Funds, rendering such conditions moot. Nevertheless, should the bill ultimately become law it would make a number of significant changes to the original TARP program. For example, a large portion of the TARP funds would be used to help homeowners avoid foreclosure and to stimulate demand for home purchases, new servicer safe harbors overriding contractual provisions would be created, more stringent executive compensation restrictions would apply to new recipients of TARP funds, the Hope for Homeowners refinancing program would be further modified and expanded, and the Treasury’s authorityunder TARP to provide support for the availability of consumer loans, as well as commercial real estate loans and mortgage-backed securities, would be clarified. Debate on that legislation H.R. 384 is still in progress, and House Democratic leaders said a vote on the bill and several amendments to it would be postponed until the week of January 19.
- How-to guide How-to guide: How to navigate challenges relating to Source of Wealth and Source of Funds (UK)
- How-to guide How-to guide: How to identify and manage antitrust and unfair trade practice risk (USA) Recently updated
- How-to guide How-to guide: How to identify relevant sanctions regimes and deal with conflicting obligations