On Friday, Treasury released its eighth Section 105(a) Troubled Assets Relief Program (TARP) Report to Congress. The report provides a summary overview of Treasury’s actions under TARP during the month of June, including:
- Auto Industry Financing Program. Treasury committed to invest $30.1 billion in General Motors Corporation (GM) to support its restructuring.
- Capital Purchase Program (CPP). Treasury invested in 36 qualified financial institutions under the CPP and continued to review applications from additional financial institutions. Additionally, 10 of the largest U.S. financial institutions subject to the Supervisory Capital Assessment Program were eligible to repay Treasury’s CPP investment.
- Homeowner Affordability and Stability Plan. Treasury entered into agreements with eight new servicers participating in the Home Affordable Modification Program.
The report also noted the release of Treasury’s Interim Final Rule on TARP Standards for Compensation and Corporate Governance, noting that the rule “(1) limits executive compensation for certain executives and highly compensated employees at companies receiving TARP assistance, (2) provides for the appointment of a Special Master to review compensation plans at firms receiving exceptional assistance, (3) implements and expands on key provisions of the American Recovery and Reinvestment Act of 2009 consistent with Treasury’s February 4, 2009 proposals, and (4) establishes additional compensation and governance standards to improve accountability and disclosure.”