In order to help banks with distressed assets, The US Treasury department established the Troubled Assets Relief Program (TARP). Under this program, the US Treasury department is authorized to draw up to $250 Billion dollars immediately with an additional $100 Billion with the approval of the President and Congress. Managed by the Office of Financial Stability, this program was designed to provide banks with immediate relief. Banks face an number of options in terms of what to do with the money and even whether or not to participate in the program. At this point the answers are not entirely clear.
The Knowledge Congress has assembled a panel of key thought leaders and expert to help banks make the best use of TARP funds. This 2 hour webcast is a must see for anyone involved in making these critical decisions.
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Group, LLC
Recommended CLE/CPE Hours: 1.75 - 2.0
(Please note, your State Bar or Accounting Board will make the final determination with respect
to continuing education credit.)
Advance Preparation: Print and review course materials
Course Code: 083820
Lori Quigley
Managing Director for Supervision
Jamie L. Boucher
Partner, Financial Institutions Regulatory Group
Gregory Peters
Managing Director, New York
Global Head of Fixed Income Research & Chief US Credit Strategist
Jamie L. Boucher
Partner, Financial Institutions Regulatory Group
Lori Quigley, Managing Director for Supervision, Office of Thrift Supervision
- Use of Funds - Provide a regulatory perspective on appropriate uses of funds under the Capital Purchase Program, including how regulators will monitor the uses
of funds. Discuss what types of activities fit the broad definition of using the funds to increase lending.
- Bank acquisition and consolidation - Discuss use of TARP money to fund the acquisition of other banks and the implications on community banking. Discuss the
pros/cons of bank acquisition/consolidation in the current economic environment as well as the long-term.
- Lending Demand - Identify and discuss trends in loan origination, performance, and demand. Discuss whether the economic environment has created a shortage of
qualified borrowers or a shortage of willing lenders.
Gregory Peters, Managing Director, New York, Global Head of Fixed Income Research & Chief US Credit Strategist, Morgan Stanley
Is TARP still critically important?
- The amorphous nature of the TARP program prompts us to question whether the program's original purpose is still relevant? In short, the combination of
capital injections and further securitized asset write downs make the initial program's intent of selling these assets less important in our view. In that vein, we
question the effectiveness of nationalization or the so-called good bank/bad bank structure.
Enter TALF
- We argue that TARP is important, but TALF is more critical in unlocking the system. The breakdown in securitization destabilized not only the financial
system, but also the economy.In order to repair the system and stabilize asset values, you need to fix the core problem - securitization. We will provide a
quick explanation of the TALF and discuss its importance, as well as our concerns.
The numerous programs, policies and stimulus should be evaluated in aggregate
- Individually each program is necessary, but not sufficient. Therefore, TARP is a single aspect of the overall governmental response and investors must
weigh the effectiveness of all these programs in order to determine whether it will have a meaningful effect on the economy and markets.
Jamie L. Boucher, Partner, Financial Institutions Regulatory Group, Skadden, Arps, Slate, Meagher & Flom LLP
Broad reform of regulatory structure
- Post-election priority for Obama administration and Congress
- Studies required by the Emergency Economic Stabilization Act
- Paulson "Blueprint" for regulatory reform as possible starting point for modernization of the regulatory regime
- Rationalization of number and overlapping jurisdictions of financial regulators
- Shift from functional to objective-based regulation; Federal Reserve as empowered regulator responsible for economic stability
- Expansion of regulation to encompass new areas (e.g., OTC derivatives, hedge funds)
- Role of Fannie, Freddie, and the other GSEs
- Harmonize regulation with global markets
Continued government intervention in the banking and financial markets
- Lending and liquidity support facilities
- Depository institution failures
Pressure on financial institutions to raise capital
- Government investments under TARP and successor programs.
- Involvement of non-traditional investors in banking sector (e.g., private equity).
Government initiatives to protect "Main Street"
- Loan modification and foreclosure prevention programs/initiatives
- Efforts to prevent unfair, deceptive/predatory, or discriminatory practices (e.g. implementation of new credit card rule, mortgage lending, other consumer finance)
CEOs
CPA's
Senior Bank/Financial Institution Officers
Bank Counsel and Directors
Banking and Finance Lawyers
Risk Managers/Officers
Financial Executives/Analysts
This is a must attend event to anyone interested in having full understanding about the Troubled Assets Relief Program.
- New guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A