Haynes and Boone's Newsroom
TARP Trends
12/01/2009
The rules of executive compensation are changing. With severely contracted liquidity in the global credit markets and insolvency threats to investment banks and other institutions, the United States government passed the Emergency Economic Stabilization Act of 2008 on October 3, 2008, to strengthen the financial sector. This Act established the Troubled Asset Relief Program, allowing the Department of Treasury to purchase up to $700 billion of troubled assets from financial institutions. To participate in TARP, financial institutions had to agree to comply with strict new limits on executive compensation.
This article outlines restrictions that apply to financial institutions participating in TARP. To read the full article, click on the PDF linked below.
Reproduced with permission from Headnotes, a publication of the Dallas Bar Association, December 2009, Vol. 33, No. 12.