• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
Quarterly Report to Congresspursuant to section 104(g) of theEmergency Economic StabilizationAct of 2008
For the quarter endingMarch 31, 2009F
INANCIAL
S
TABILITY
O
VERSIGHT
B
OARD
 
Ben S. Bernanke, ChairpersonChairmanBoard of Governors of the Federal Reserve SystemTimothy M. GeithnerSecretaryShaun DonovanSecretaryDepartment of the Treasury Department of Housingand Urban DevelopmentMary L. SchapiroChairmanSecurities and Exchange CommissionJames B. Lockhart IIIDirectorFederal Housing Finance Agency 
 
F
INANCIAL
S
TABILITY
O
VERSIGHT
B
OARD
DRAFT
 
-
 
Q
UARTERLY
R
EPORT
 
1
Table of ContentsI. Introduction
............................................................................................................
2
 
II. Oversight Activities of theFinancial Stability Oversight Board
.....................................................................
4
 
III. Evaluating the Effects of EESA Programs
..........................................................
9
a.
 
Early assessment of the effect of the actionstaken by Treasury in stabilizing the financial markets ................................................
9
 b.
 
Early assessment of the effects of the actionstaken by Treasury on the housing markets ...............................................................
23
 
IV. Description of the Actions Taken by Treasuryunder the EESA during the Quarterly Period
..................................................
26
a.
 
Term Asset-Backed Securities Loan Facility.............................................................
26
 b.
 
Unlocking Credit for Small Businesses .....................................................................
29
 c.
 
Home Affordable Modification Program ...................................................................
31
 d.
 
Capital Purchase Program ..........................................................................................
34
 e.
 
Capital Assistance Program .......................................................................................
39
 f.
 
Public-Private Investment Program ...........................................................................
41
 g.
 
Targeted Investment Program and Asset Guarantee Program ...................................
43
 h.
 
American International Group, Inc. ..........................................................................
47
 i.
 
Automotive Industry Financing Program ..................................................................
50
  j.
 
Auto Supplier Support Program.................................................................................
52
 k.
 
Warranty Commitment Program ................................................................................
53
 l.
 
Executive Compensation ...........................................................................................
53
 m.
 
Administrative Activities of the Office of Financial Stability ...................................
56
 
Appendix A. Minutes of Financial Stability OversightBoard Meetings During the Quarterly Period
......................................
61
 
F
INANCIAL
S
TABILITY
O
VERSIGHT
B
OARD
DRAFT
 
-
 
Q
UARTERLY
R
EPORT
 
2
I.
 
INTRODUCTION
This report constitutes the second quarterly report of the Financial StabilityOversight Board (“Oversight Board”) pursuant to section 104(g) of the EmergencyEconomic Stabilization Act of 2008 (“EESA”). This report covers the period fromJanuary 1, 2009, through the quarter ending March 31, 2009 (the “quarterly period”).In light of the extraordinary events occurring in the financial markets and thesubstantial risks such events posed to financial stability and the health of theU.S. economy, Congress passed the EESA and it was signed into law on October 3, 2008.The primary purpose of the EESA was “to immediately provide authority and facilitiesthat the Secretary of the Treasury can use to restore liquidity and stability to the financialsystem of the United States.”
1
During the quarterly period, Treasury announced several important initiativesunder the EESA to help stabilize the financial markets and systemically importantfinancial institutions, promote the availability of credit to consumers and smallbusinesses, reduce preventable foreclosures, and promote the transparency of programsunder the TARP. For example, in February 2009, Treasury announced the adoption of acomprehensive Financial Stability Plan to help address the financial crisis. This planincluded: (1) a new capital program to provide banks with a safeguard against a deeperthan expected downturn in economic conditions; (2) the expansion of the Term Asset-Backed Securities Loan Facility, a joint program with the Federal Reserve, to improveIn particular, the EESA authorized the Secretary of theTreasury (“Secretary”) to establish the Troubled Assets Relief Program (“TARP”) andtake a variety of actions under the TARP to achieve the purposes of the EESA. Theseauthorities, combined with the commitment of up to $700 billion, provided theU.S. government with important new tools to help stabilize the financial system, maintainand restore the flow of credit to households and businesses, and mitigate the downwardpressures caused by the financial crisis on jobs, the housing and housing finance markets,and economic conditions more broadly.The Oversight Board was established by section 104 of the EESA to help overseethe TARP and other emergency authorities and facilities granted to the Secretary underthe EESA. The Oversight Board is composed of the Secretary, the Chairman of theBoard of Governors of the Federal Reserve System (“Federal Reserve Board”), theDirector of the Federal Housing Finance Agency (“FHFA”), the Chairman of theSecurities and Exchange Commission (“SEC”), and the Secretary of the Department of Housing and Urban Development (“HUD”). During the quarterly period, themembership of the Oversight Board was partially reconstituted due to the Presidentialappointments and Senate confirmations of Mr. Timothy M. Geithner as Secretary of theTreasury, Mr. Shaun Donovan as Secretary of HUD, and Ms. Mary L. Schapiro asChairman of the SEC. Chairman Bernanke was elected by the Members to serve asChairperson of the Oversight Board.
1
12 U.S.C. § 5201.
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...