Financial Crisis Timeline

 

2010: September | August | July | June | May | April | March | February | January

2009: December | November | October | September | August | July | June | May | April | March | February | January  

2008: December | November | October | September | AugustJuly | June | May | April | March  

Table of Abbreviations

September 8, 2010

The Federal Reserve announces that it has authorized ongoing small-value offerings of term deposits under the Term Deposit Facility (TDF) designed to ensure the operational readiness of the TDF and to provide eligible institutions with an opportunity to gain familiarity with term deposit procedures. The Board currently anticipates that TDF auctions will be held about every other month.
Press Release

September 7, 2010

The Treasury announces its intention to dispose of certain warrant positions received in consideration for investments made under the Capital Purchase Program. Over the next several weeks, the Treasury intends to conduct auctions to sell its warrant positions in The Hartford Financial Services Group, Inc. and Lincoln National Corporation. Each of these financial institutions has fully repurchased the Treasury's preferred stock investment. The warrant sales, if consummated in full, would represent the Treasury's disposition of its remaining holdings in these financial institutions. 

August 20, 2010

The OCC releases a list of CRA performance evaluations that became public during the period of July 15, 2010 through August 14, 2010. Of the 39 evaluations, 9 were outstanding, 30 were satisfactory, none were needs to improve, and none were substantial noncompliance.
Press Release

August 10, 2010

The FDIC approves the creation of a new Office of Complex Financial Institutions (CFI) and Division of Depositor and Consumer Protection (DCP) to help carry out its responsibilities under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The CFI will perform continuous review and oversight of bank holding companies with more than $100 billion in assets as well as non-bank financial companies designated as systemically important by the new Financial Stability Oversight Council. CFI will also be responsible for carrying out the FDIC's new authority under the Act to implement orderly liquidations of bank holding companies and non-bank financial companies that fail.
Press Release

August 4, 2010

State Housing Finance Agencies in North Carolina, Ohio, Oregon, Rhode Island and South Carolina can begin to use $600 million in foreclosure-prevention assistance from the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets under plans approved by the Obama Administration. The five State Housing Finance Agencies submitted their proposals to Treasury on June 1; Treasury then reviewed each state's proposal to ensure compliance with the Emergency Economic Stabilization Act of 2008 and offer technical assistance to develop performance and reporting metrics.

July 20, 2010

The Federal Reserve Board announces that it has agreed with the Treasury Department that it was appropriate for Treasury to reduce from $20 billion to $4.3 billion the credit protection provided for the TALF under the TARP. The Federal Reserve Board had authorized up to $200 billion in TALF loans, but when the program closed on June 30, 2010, there were $43 billion in loans outstanding.
Press Release

The OCC releases a list of Community Reinvestment Act performance evaluations that became public during the period of June 15, 2010 through July 14, 2010. Of the 28 evaluations made public this month, 7 were outstanding, 21 were satisfactory, none were needs to improve and none were substantial noncompliance.
Press Release

July 12, 2010

The Board of Directors of the FDIC vote to revise its Memorandum of Understanding with the primary federal banking regulators to enhance the FDIC's existing backup authorities over insured depository institutions that the FDIC does not directly supervise. Specifically, the revised MOU gives the FDIC backup supervision authority under an expanded list of circumstances, including when the insurance pricing system suggests an insured depository institution might be at higher risk, when institutions are defined as "large" under international regulatory guidelines, or when large, interconnected bank holding companies are defined as "systemic" by the financial reform legislation pending in Congress. At large, complex insured depositary institutions, the FDIC will establish an expanded continuous, full-time staff presence on-site.
Press Release

July 8, 2010

The Federal Reserve offers $2 billion in 84-day term deposits through its Term Deposit Facility.
Press Release

June 28, 2010

The Federal Reserve offers $2 billion in 28-day term deposits through its Term Deposit Facility.
Press Release

June 21, 2010

The Federal Reserve, the OCC, the OTS, and the FDIC issue final guidance to ensure that incentive compensation arrangements at financial organizations take into account risk and are consistent with safe and sound practices. The guidance is designed to ensure that incentive compensation arrangements at banking organizations appropriately tie rewards to longer-term performance and do not undermine the safety and soundness of the firm or create undue risks to the financial system.
Press Release

June 16, 2010

The FHFA directs Fannie Mae and Freddie Mac, operating in conservatorship, to delist their common and preferred stock from the New York Stock Exchange and any other national securities exchange. Once the delisting is completed, each of Fannie Mae and Freddie Mac's common and preferred stock is expected to be quoted on the Over–the-Counter Bulletin Board.
Press Release

June 11, 2010

The Federal Reserve offers $1 billion in 14-day term deposits through its Term Deposit Facility.
Press Release

In its May monthly TARP report to Congress, the Treasury announces that TARP repayments to taxpayers have, for the first time, surpassed the total amount of TARP funds outstanding. The report shows that, through the end of the May, TARP repayments reached a total of $194 billion, which exceeded the total amount of TARP funds outstanding ($190 billion) by $4 billion.

June 10, 2010

The Treasury announces that it has priced a secondary public offering of 2,615,557 warrants to purchase common stock of Sterling Bancshares, Inc. at $1.15 per warrant. The aggregate net proceeds to the Treasury from the offering are expected to be $2,857,915. The closing is expected to occur on or about June 15, 2010, subject to customary closing conditions.

June 8, 2010

The Treasury announces that it has commenced a secondary public offering of up to 2,615,557 warrants to purchase the common stock of Sterling Bancshares, Inc., which will provide an additional return from the Treasury's investment beyond the dividend payments it received on the related preferred stock. The offering is expected to price through a modified Dutch auction.

June 3, 2010

The Treasury announces that it has priced a secondary public offering of 465,117 warrants to purchase common stock of First Financial Bancorp. at $6.70 per warrant. The aggregate net proceeds to the Treasury from the offering are expected to be $2,966,288. The closing is expected to occur on or about June 8, 2010, subject to customary closing conditions.

June 1, 2010

The Treasury announces that it has commenced a secondary public offering of 465,117 warrants to purchase the common stock of First Financial Bancorp, the proceeds of which will provide an additional return from the Treasury's investment beyond the dividend payments it received on the related preferred stock. The offering is expected to price through a modified Dutch auction.

May 28, 2010

The Federal Reserve schedules three small-value auctions of term deposits through its Term Deposit Facility (TDF) over the next two months. All term deposit auctions will use a single-price format in which all winning bids will be awarded at the highest rate accepted at the auction.
Press Release

May 26, 2010

Treasury announces the completion of its sale of 1.5 billion shares of Citigroup common stock pursuant to a trading plan with Morgan Stanley as sales agent. In this initial plan, Treasury sold 19.5% of its Citigroup common stock holdings and received gross proceeds of approximately $6.2 billion from the sale. Treasury currently owns approximately 6.2 billion shares of Citigroup common stock and expects to continue selling its shares in the market in an orderly fashion. Treasury has entered into a second pre-arranged written trading plan under which Morgan Stanley will have discretionary authority to sell an additional 1.5 billion shares under certain parameters.

May 25, 2010

U.S. house prices fell in the first quarter of 2010 according to the FHFA’s seasonally adjusted, purchase-only house price index (HPI). The HPI calculated using home sales price information from Fannie Mae- and Freddie Mac-acquired mortgages, was 1.9% lower on a seasonally adjusted basis in the first quarter 2010 than in the fourth quarter of 2009.
Press Release

May 21, 2010

The OCC releases a list of Community Reinvestment Act performance evaluations that became public during the period of April 15, 2010 through May 14, 2010. Of the 30 evaluations made public this month, two were outstanding, 27 were satisfactory, one was needs to improve and none were substantial noncompliance.
Press Release

Treasury notifies Congress that the projected cost of the TARP has decreased by $11.4 billion to $105.4 billion since the FY 2011 President's Budget. The decrease in total costs is primarily a result of appreciation in the value of the 7.7 billion shares of Citigroup common stock held by Treasury. As of March 31, 2010, each share had a market value of $4.05, or $0.80 over the price per share when the company's preferred shares were converted to common equity by Treasury. In addition, the estimated value of Treasury's Automotive Industry Financing Program investments has increased as the outlook for the domestic automobile industry has improved. Lastly, estimated cost related to AIG has decreased by $2.9 billion as prospects for the company have improved.

May 20, 2010

Commercial banks and savings institutions insured by the FDIC report an aggregate profit of $18 billion in the first quarter of 2010, a $12.5 billion improvement from the $5.6 billion the industry earned in the first quarter of 2009, but still well below historical norms for quarterly profits.
Press Release

May 17, 2010

The Treasury announces that it has commenced a secondary public offering of 2,532,542 warrants to purchase the common stock of Valley National Bancorp (the "Company"). The proceeds of this sale will provide an additional return to the American taxpayer from Treasury's investment in the Company beyond the dividend payments it received on the related preferred stock. The offering is expected to price through a modified Dutch auction.
Press Release

The Treasury announces that it has received a $1.9 billion repayment from Chrysler Holding (CGI Holding) in settlement of one of the loans that the Treasury Department extended to finance Chrysler LLC, the "Old Chrysler" automobile company. This repayment, while less than face value, is greater than an independent valuation of the loan provided by investment banking firm Keefe, Bruyette and Woods, which was hired by Treasury in connection with the transaction. As a result of the repayment, CGI Holding and Chrysler Financial no longer have outstanding obligations to Treasury under the TARP.
Press Release

May 7, 2010

The Treasury announces that it has priced a secondary public offering of 11,479,592 warrants to purchase common stock of Comerica Incorporated (the "Company") at $16.00 per warrant. The aggregate net proceeds to Treasury from the offering are expected to be $181,102,043. The closing is expected to occur on or about May 12, 2010, subject to customary closing conditions, and this offering represents the Treasury's sale of its remaining investment in the Company.
Press Release

May 4, 2010

The Treasury announces that it has commenced a secondary public offering of 11,479,592 warrants to purchase the common stock of Comerica Incorporated (the "Company"). The proceeds of this sale will provide an additional return to the American taxpayer from Treasury's investment in the Company beyond the dividend payments it received on the related preferred stock. The offering is expected to price through a modified Dutch auction.
Press Release

April 30, 2010

The Treasury announces that it has priced a secondary public offering of 16,885,192 warrants to purchase common stock of The PNC Financial Services Group, Inc. (the "Company") at $19.20 per warrant. The aggregate net proceeds to the Treasury from the offering are expected to be $320,277,984. The closing is expected to occur on or about May 5, 2010, subject to customary closing conditions, and this offering represents the Treasury's sale of its remaining investment in the Company.
Press Release

April 27, 2010

The Treasury announces that it has commenced a secondary public offering of 16,885,192 warrants to purchase the common stock of The PNC Financial Services Group, Inc. (the “Company”). The proceeds of these sales will provide an additional return to the American taxpayer from Treasury's investment in the Company beyond the dividend payments it received on the related preferred stock. The offerings are expected to price through a modified Dutch auction.
Press Release

April 21, 2010

The Treasury announces that General Motors (GM) has fully repaid its debt under the Troubled Asset Relief Program (TARP). GM paid the remaining $4.7 billion of the total $6.7 billion in debt owed to Treasury. The repayment comes five years ahead of the loan maturity date and ahead of the accelerated repayment schedule the company announced last year. With this repayment, less than $200 billion in TARP disbursements remain outstanding.
Press Release

April 16, 2010

The SEC charges Goldman, Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter. The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of subprime residential mortgage-backed securities and failed to disclose information to investors information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO.
Press Release

April 15, 2010

Federal regulators release an Online Form Builder that financial institutions can download and use to develop and print customized versions of a model consumer privacy notice. Instructions for the form builder will guide an institution to select the version of the model form that fits its practices, such as whether the institution provides an opt-out for consumers. To obtain a legal "safe harbor" and to satisfy the law's disclosure requirements, institutions must follow the instructions in the model form regulation when using the Online Form Builder.
Press Release

April 13, 2010

The Board of Directors of the FDIC approves an interim rule to extend the Transaction Account Guarantee (TAG) program to December 31, 2010. Under the TAG program, customers of participating insured depository institutions are provided full coverage on transaction accounts. The interim rule gives the Board discretion to extend the program to the end of 2011, without additional rulemaking, if it determines that economic conditions warrant such an extension. Nearly 6,400 insured depository institutions, about 80% of the industry, continue to participate in the TAG program.
Press Release

April 9, 2010

Beach First National Bank, Myrtle Beach, South Carolina, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Bank of North Carolina, Thomasville, North Carolina, to assume all of the deposits of Beach First National Bank.
Press Release

April 8, 2010

Comptroller of the Currency John C. Dugan tells the Financial Crisis Inquiry Commission that a key factor in the financial crisis was poor credit underwriting, particularly by nonbank lenders that were subject to little or no regulation, and said action is needed. "I believe the government should establish minimum, common sense underwriting standards for mortgages that can be effectively applied and enforced for all mortgage lenders, whether they are regulated banks or unregulated mortgage companies,” he testified. “If we had had such basic, across the board rules in place ten years ago on income verification, down payments, and teaser rate mortgages, I believe the financial crisis would have been much less severe than it was."
Press Release

April 5, 2010

Treasury and the Office of Management and Budget (OMB) announce the opening of a new office created to improve and streamline financial management across the U.S. government. The Office of Financial Innovation and Transformation will be located in the Treasury Department and will work in collaboration with OMB to reduce costs, streamline processes, and provide better transparency of financial information.
Press Release

April 2, 2010

The Treasury receives full repayment on its TARP investment in Hartford Financial Services Group, Inc. in the sum of $3.4 billion, as well as a $1 billion repayment from General Motors. TARP repayments now total $181 billion, ahead of last fall's repayment projections for 2010.
Press Release

April 1, 2010

The FDIC closes on a sale of an equity interest in a limited liability company created to hold certain assets transferred from 19 failed bank receiverships. The purchaser of the interest in the Multibank Structured Transaction Single Family Residential 2010-1 is Roundpoint Mortgage Servicing Corporation. The sale was conducted through a competitive auction held on February 24, 2010. Nine different qualified groups submitted bids to purchase either a 50% leveraged ownership interest or a 20% unleveraged ownership interest in the newly formed LLC. The winning bid was submitted on the leveraged ownership interest. The FDIC will hold the remaining 50% equity interest in its receivership capacity.
Press Release

The Treasury exercises its right to appoint two directors to the American International Group, Inc. (AIG) board of directors, naming Donald H. Layton and Ronald A. Rittenmeyer as directors. The Treasury had the right to appoint these directors because AIG failed to pay dividends for four quarters on the AIG preferred stock held by the Treasury.
Press Release

March 29, 2010

The Treasury announces its intention to fully dispose of approximately 7.7 billion shares of Citigroup, Inc. common stock over the course of 2010, subject to market conditions. The Treasury received these shares pursuant to the June 2009 Exchange Agreement with Citigroup, which provided for the exchange into common shares of the preferred stock that the Treasury purchased in connection with Citigroup's participation in the Capital Purchase Program. The Treasury intends to initiate its disposition of the common shares pursuant to a pre-arranged written trading plan. The manner, amount and timing of the sales under the plan is dependent upon a number of factors.
Press Release

March 26, 2010

McIntosh Commercial Bank, Carrollton, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with CharterBank, West Point, Georgia, to assume all of the deposits of McIntosh Commercial Bank.
Press Release

Key West Bank, Key West, Florida, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Centennial Bank, Conway, Arkansas, to assume all of the deposits of Key West Bank.
Press Release

Unity National Bank, Cartersville, Georgia, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Bank of the Ozarks, Little Rock, Arkansas, to assume all of the deposits of Unity National Bank.
Press Release

Desert Hills Bank, Phoenix, Arizona, is closed by the Arizona Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with New York Community Bank, Westbury, New York, to assume all of the deposits of Desert Hills Bank.
Press Release 

March 23, 2010

U.S. house prices fell 0.6% on a seasonally adjusted basis from December to January, according to the FHFA’s monthly House Price Index. The previously reported 1.6% decline in December was revised downward to a 2.0% decline. For the 12 months ending in January, U.S. prices fell 3.3%. The U.S. index is 13.2% below its April 2007 peak.
Press Release

March 19, 2010

American National Bank, Parma, Ohio, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with The National Bank and Trust Company, Wilmington, Ohio, to assume all of the deposits of American National Bank.
Press Release

Century Security Bank, Duluth, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Bank of Upson, Thomaston, Georgia, to assume all of the deposits of Century Security Bank.
Press Release

The FDIC approves the payout of the insured deposits of Advanta Bank Corp., Draper, Utah. The bank is closed today by the Utah Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC is unable to find another financial institution to take over the banking operations of Advanta Bank Corp.
Press Release

Appalachian Community Bank, Ellijay, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Community & Southern Bank, Carrollton, Georgia, to assume all of the deposits of Appalachian Community Bank.
Press Release

Bank of Hiawassee, Hiawassee, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Citizens South Bank, Gastonia, North Carolina, to assume all of the deposits of Bank of Hiawassee.
Press Release

First Lowndes Bank, Fort Deposit, Alabama, is closed by the Alabama Banking Department, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First Citizens Bank, Luverne, Alabama, to assume all of the deposits of First Lowndes Bank.
Press Release

State Bank of Aurora, Aurora, Minnesota, is closed by the Minnesota Department of Commerce, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Northern State Bank, Ashland, Wisconsin, to assume all of the deposits of State Bank of Aurora.
Press Release

March 18, 2010

The OCC releases a list of Community Reinvestment Act performance evaluations that became public during the period of February 15, 2010 through March 14, 2010. Of the 28 evaluations made public this month, two were outstanding, 25 were satisfactory, one was needs to improve and none were substantial noncompliance.
Press Release

March 17, 2010

The federal banking agencies, in conjunction with the Conference of State Bank Supervisors, released a policy statement today on their expectations for sound funding and liquidity risk management practices. The policy statement emphasizes the importance of cash flow projections, diversified funding sources, stress testing, a cushion of liquid assets, and a formal, well-developed contingency funding plan as primary tools for measuring and managing liquidity risk. The agencies expect each financial institution to manage funding and liquidity risk using processes and systems that are commensurate with the institution's complexity, risk profile, and scope of operations.
Press Release

March 12, 2010

The FDIC closes on a sale of notes backed by residential mortgage backed securities (RMBS) from seven failed bank receiverships. The sale was conducted through a private placement priced and allocated on March 5th. Over 70 investors participated across fixed and floating rate series, including banks, investment funds, insurance funds and pension funds. All investors were qualified institutional buyers. The $1.8 billion in proceeds will go to the seven failed bank receiverships and eventually be used to pay creditors, including the FDIC's Deposit Insurance Fund.
Press Release

The Park Avenue Bank, New York, New York, is closed by the New York State Banking Department, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Valley National Bank, Wayne, New Jersey, to assume all of the deposits of The Park Avenue Bank.
Press Release

Old Southern Bank, Orlando, Florida, is closed by the Florida Office of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Centennial Bank, Conway, Arkansas, to assume all of the deposits of Old Southern Bank.
Press Release

Statewide Bank, Covington, Louisiana, is closed by the Louisiana Office of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Home Bank, Lafayette, Louisiana, to assume all of the deposits of Statewide Bank.
Press Release

The Treasury announces it priced a secondary public offering of 758,086 warrants to purchase common stock of Texas Capital Bancshares, Inc. at $8.85 per warrant. The aggregate net proceeds to the Treasury from the offering are expected to be $6,559,066. These proceeds provide an additional return from Treasury's investment in the Company beyond the dividend payments it received on the related preferred stock. The closing is expected to occur on or about March 17, 2010, subject to customary closing conditions.
Press Release 

March 10, 2010

The Treasury announces that it priced a secondary public offering of 1,707,456 warrants to purchase common stock of Washington Federal, Inc. (the "Company") at $9.15 per warrant. The aggregate net proceeds to Treasury from the offering are expected to be $15,388,874. The closing is expected to occur on or about March 15, 2010, subject to customary closing conditions. This offering represents Treasury's sale of its remaining investment in the Company.
Press Release

March 8, 2010

The Federal Reserve offers $25 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release 

The Treasury announces that it has commenced secondary public offerings of the following securities: (i) 1,707,456 warrants to purchase the common stock of Washington Federal, Inc.; (ii) 595,829 warrants to purchase the common stock of Signature Bank; and (iii) 758,086 warrants to purchase the common stock of Texas Capital Bancshares, Inc. The proceeds of these sales will provide an additional return to the American taxpayer from the Treasury's investment in Washington Federal, Signature Bank and Texas Capital beyond the dividend payments it received on the related preferred stock. Each offering is expected to price through a modified Dutch auction. Deutsche Bank Securities Inc. is the sole book-running manager for these offerings.
Press Release

March 5, 2010

Sun American Bank, Boca Raton, Florida, is closed by the Florida Office of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, North Carolina, to assume all of the deposits of Sun American Bank.
Press Release

Bank of Illinois, Normal, Illinois, is closed by the Illinois Department of Financial Professional Regulation – Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Heartland Bank and Trust Company, Bloomington, Illinois, to assume all of the deposits of Bank of Illinois.
Press Release 

Waterfield Bank, Germantown, Maryland, is closed today by OTS, which appoints the FDIC as receiver. The FDIC creates Waterfield Bank, FA—a new depository institution chartered by the OTS and insured by the FDIC—to take over the operations of Waterfield Bank. The new institution will remain open until April 5, 2010, to allow depositors access to their insured funds and time to move accounts to other insured institutions.
Press Release

The FDIC approves the payout of the insured deposits of Centennial Bank, Ogden, Utah. Centennial Bank is closed by the Utah Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into an agreement with Zions First National Bank, Salt Lake City, Utah, to accept the failed bank's direct deposits from the federal government, such as Social Security and Veterans' payments.
Press Release

March 4, 2010

The Treasury announces it has priced a secondary public offering of 150,375,940 warrants to purchase common stock of Bank of America Corporation at $8.35 per warrant and a secondary public offering of 121,792,790 warrants to purchase common stock at $2.55 per warrant. The aggregate net proceeds to the Treasury from the offerings are expected to be approximately $1,542,717,552.79. These proceeds provide an additional return from the Treasury's investment beyond the dividend payments it received on the related preferred stock. The closings are expected to occur on or about March 9, 2010, subject to customary closing conditions.
Press Release

March 1, 2010

The Treasury announces it has commenced a secondary public offering of 150,375,940 warrants to purchase the common stock of Bank of America Corporation and a secondary public offering of 121,792,790 warrants to purchase the common stock of the Company. The proceeds of these sales will provide an additional return from Treasury's investment in the Company beyond the dividend payments it received on the related preferred stock. The offerings are expected to price through a modified Dutch auction. Deutsche Bank Securities Inc., in its capacity as auction agent, has specified that the auctions will commence at 8 a.m., Eastern Time, on March 3, 2010, and will close at 6:30 p.m., Eastern Time.
Press Release

FHFA announces the extension of the Home Affordable Refinance Program, a refinancing program administered by Fannie Mae and Freddie Mac, to June 30, 2011. The program expands access to refinancing for qualified individuals and families whose homes have lost value.
Press Release

February 26, 2010

Carson River Community Bank, Carson City, Nevada, is closed by the Nevada Department of Business and Industry, Financial Institutions Division, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Heritage Bank of Nevada, Reno, Nevada, to assume all of the deposits of Carson River Community Bank.
Press Release

Rainier Pacific Bank, Tacoma, Washington, is closed by the Washington Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Umpqua Bank, Roseburg, Oregon, to assume all of the deposits of Rainier Pacific Bank.
Press Release

The Treasury and the Office of Management and Budget release the FY2009 Financial Report of the United States Government, which details the U.S. Government's current financial position, as well as its short-term and long-term financial outlook. The report is prepared pursuant to Federal accounting standards. Treasury and OMB are also releasing an accompanying "Citizen's Guide to the Financial Report." The Report and the Guide can be found at: http://www.fms.treas.gov/fr/index.html.
Press Release

February 23, 2010

Commercial banks and savings institutions insured by the FDIC report an aggregate profit of $914 million in the fourth quarter of 2009, a $38.7 billion improvement from the $37.8 billion net loss the industry sustained in the fourth quarter of 2008, but still well below historical norms for quarterly profits. More than half of all institutions reported year-over-year improvements in their quarterly net income. Almost one-third of all institutions (32.7%) reported net losses for the quarter, compared to 34.6% a year earlier.
Press Release

February 19, 2010

Marco Community Bank, Marco Island, Florida, is closed by the Florida Office of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Mutual of Omaha Bank, Omaha, Nebraska, to assume all of the deposits of Marco Community Bank.
Press release

The La Coste National Bank, La Coste, Texas, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Community National Bank, Hondo, Texas, to assume all of the deposits of The La Coste National Bank.
Press Release

George Washington Savings Bank, Orland Park, Illinois, is closed today by the Illinois Department of Financial Professional Regulation – Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with FirstMerit Bank, National Association, Akron, Ohio, to assume all of the deposits of George Washington Savings Bank.
Press Release

La Jolla Bank, FSB, La Jolla, California, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with OneWest Bank, FSB, Pasadena, California, to assume all of the deposits of La Jolla Bank, FSB.
Press Release

The OCC releases a list of Community Reinvestment Act performance evaluations that became public during the period of January 15, 2010 through February 14, 2010. Of the nine evaluations made public this month, one was outstanding, eight were satisfactory, none were needs to improve and none were substantial noncompliance.
Press Release

February 18, 2010

The Federal Reserve announces that it has unanimously approved several modifications to the terms of its discount window lending programs. The changes to the discount window facilities include Board approval of requests by the boards of directors of the 12 Federal Reserve Banks to increase the primary credit rate from 1/2% to 3/4%. In addition, the Board announced that, effective on March 18, the typical maximum maturity for primary credit loans will be shortened to overnight. Finally, the Board announced that it had raised the minimum bid rate for the TAF by 1/4 percentage point to 1/2%. The final TAF auction will be on March 8, 2010.
Press Release

The Treasury announces its intention over the next month to conduct auctions to sell its warrant positions in Bank of America Corporation, Washington Federal, Inc., Texas Capital Bancshares, Inc. and Signature Bank, received in consideration for investments made under the Capital Purchase Program and Targeted Investment Program. The anticipated sales, if consummated in full, would represent Treasury's disposition of its remaining holdings in these banks. The Treasury intends to sell the warrants through public offerings executed using a modified Dutch auction methodology. More detailed guidance will be available in prospectuses that will be filed or offering circulars that will be made available by the warrant issuers prior to the opening of each auction.
Press Release

February 10, 2010

The Treasury receives full repayment on its TARP investment in PNC Bank in the sum of $7.6 billion, bringing the total amount of repaid TARP funds to more than $173 billion. The Treasury now estimates that total bank repayments and proceeds from sales of its common stock in banks should exceed $185 billion by the end of 2010, cutting total taxpayer exposure to the banks by three-quarters.
Press Release

February 8, 2010

The Federal Reserve offers $50 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

February 5, 2010

1st American State Bank of Minnesota, Hancock, Minnesota is closed by the Minnesota Department of Commerce, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Community Development Bank, FSB, Ogema, Minnesota, to assume all of the deposits of 1st American State Bank of Minnesota.
Press Release

January 29, 2010

First National Bank of Georgia, Carrollton, Georgia, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Community & Southern Bank, Carrollton, Georgia, a newly chartered institution, to assume all of the deposits of First National Bank of Georgia.
Press Release

Florida Community Bank, Immokalee, Florida, is closed by the Florida Office of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Premier American Bank, National Association, Miami, Florida, to assume all of the deposits of Florida Community Bank.
Press Release

Marshall Bank, National Association, Hallock, Minnesota, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with United Valley Bank, Cavalier, North Dakota, to assume all of the deposits of Marshall Bank, N.A.
Press Release

Community Bank and Trust, Cornelia, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with SCBT, N.A., Orangeburg, South Carolina, to assume all of the deposits of Community Bank and Trust.
Press Release

First Regional Bank, Los Angeles, California, is closed by the California Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, North Carolina, to assume all of the deposits of First Regional Bank.
Press Release

American Marine Bank, Bainbridge Island, Washington, is closed by the Washington Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Columbia State Bank, Tacoma, Washington, to assume all of the deposits of American Marine Bank.
Press Release

January 26, 2010

The FHFA reports that the average interest rate on conventional 30-year, fixed-rate mortgage loans of $417,000 or less decreased 4 basis points to 5.05% in December. The average interest rate on 15-year, fixed-rate loans of $417,000 or less decreased 9 basis points to 4.54% in December. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages.
Press Release

January 22, 2010

Premier American Bank, Miami, Florida, is closed by the Florida office of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Premier American Bank, National Association, Miami, Florida, a newly-chartered national institution, to assume all of the deposits of Premier American Bank.
Press Release

Bank of Leeton, Leeton, Missouri, is closed by the Missouri Division of Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Sunflower Bank, National Association, Salina, Kansas, to assume all of the deposits of Bank of Leeton.
Press Release

Charter Bank, Santa Fe, New Mexico, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Charter Bank, Albuquerque, New Mexico, a newly-chartered federal savings bank and a subsidiary of Beal Financial Corporation, Plano, Texas, to assume all of the deposits of Charter Bank.
Press Release

Evergreen Bank, Seattle, Washington, is closed by the Washington Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Umpqua Bank, Roseburg, Oregon, to assume all of the deposits of Evergreen Bank.
Press Release 

Columbia River Bank, The Dalles, Oregon, is closed by the Oregon Division of Finance and Corporate Securities, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Columbia State Bank, Tacoma, Washington, to assume all of the deposits of Columbia River Bank.
Press Release

The OCC announces that it has approved the first use of a “shelf charter” for the acquisition of a failed bank, allowing Bond Street Bank, National Association, to acquire a Florida bank that was placed in receivership. The “shelf charter” is a new mechanism that involves the granting of preliminary approval to investors for a national bank charter. The charter remains inactive, or “on the shelf” until such time as the investor group is in a position to acquire a troubled institution. By granting the preliminary approval, the OCC expands the pool of potential buyers available to buy troubled institutions, and in particular the new equity capital available to bid on troubled institutions through the FDIC’s bid process.
Press Release

January 20, 2010

The Treasury releases a TARP Warrant Disposition Report, which provides an overview of the warrants received by Treasury under the Capital Purchase Program of TARP. As of December 31, 2009, the Treasury has received $4 billion in gross proceeds on the disposition of warrants in 34 banks, consisting of (i) $2.9 billion from repurchases by the issuers at agreed upon fair market values and (ii) $1.1 billion from auctions. For those 34 institutions, the Treasury received an absolute return of 3.1% from dividends and an added 5.7% return from the sale of the warrants for a total absolute return of 8.8%.
Press Release

January 15, 2010

Town Community Bank and Trust, Antioch, Illinois is closed by the Illinois Department of Financial Professional Regulation, Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First American Bank, Elk Grove Village, Illinois, to assume all of the deposits of Town Community Bank and Trust.
Press Release

St. Stephen State Bank, St. Stephen, Minnesota is closed by the Minnesota Department of Commerce, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First State Bank of St. Joseph, St. Joseph, Minnesota, to assume all of the deposits of St. Stephen State Bank.
Press Release

Barnes Banking Company, Kaysville, Utah is closed by the Utah Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC creates the Deposit Insurance National Bank of Kaysville (DINB), which will remain open until February 12, 2010 to allow depositors access to their insured deposits and time to open accounts at other insured institutions.
Press Release

January 14, 2010

The OCC releases a list of Community Reinvestment Act performance evaluations that became public during the period of December 15, 2009 through January 14, 2010. Of the 30 evaluations made public this month, 3 were outstanding, 27 were satisfactory, none were needs to improve and none were substantial noncompliance.
Press Release

January 13, 2010

The FDIC enters into a purchase and assumption agreement for the assets and deposits of the recently created Independent Bankers' Bank Bridge Bank, National Association (IBBBB). The bridge bank was created by the FDIC on December 18, 2009, to take over the operations of Independent Bankers' Bank, Springfield, Illinois, when the bank was closed by the Illinois Department of Financial and Professional Regulation—Division of Banking.
Press Release

January 11, 2010

The Federal Reserve offers $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

January 8, 2010

Horizon Bank, Bellingham, Washington, is closed by the Washington State Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Washington Federal Savings and Loan Association, Seattle, Washington, to assume all of the deposits of Horizon Bank.
Press Release

December 31, 2009

The Treasury releases its annual Agency Financial Report, prepared in accordance with the requirements of Office of Management and Budget Circular A-136, Financial Reporting Requirements.

December 30, 2009

The Treasury announces that it is acting on its previously announced commitment to provide capital to GMAC as identified in May as a result of the Supervisory Capital Assessment Program. Due to a variety of factors, Treasury will commit $3.8 billion of new capital to GMAC rather than the $5.6 billion originally announced, resulting in a $1.8 billion reduction in Treasury's previously forecasted TARP expenditures.

December 28, 2009

The Federal Reserve proposes amendments to Regulation D (Reserve Requirements of Depository Institutions) that would enable the establishment of a term deposit facility. Under the proposal, the Federal Reserve Banks would offer interest-bearing term deposits to eligible institutions through an auction mechanism. Term deposits would be one of several tools that the Federal Reserve could employ to drain reserves to support the effective implementation of monetary policy.
Press Release

December 24, 2009

The FHFA today reports that the average interest rate on conventional 30-year, fixed-rate mortgage loans of $417,000 or less decreased 1 basis point to 5.09% in November. The average interest rate on 15-year, fixed-rate loans of $417,000 or less increased 1 basis point to 4.63% in November. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase money mortgages.
Press Release

December 22, 2009

The Treasury announces that the American Recovery and Reinvestment Act has provided more than $4 billion in funding to spur the development of affordable housing around the country. To date, 50 state and territorial housing authorities have received payments in lieu of tax credits to stimulate the construction and completion of affordable housing projects, including awards in this round made to Arizona, Delaware, Georgia, Hawaii, Indiana, Michigan, Minnesota, New Mexico, Ohio, Pennsylvania and Utah with Texas being a first time recipient.

The Treasury receives repayments on its TARP investments in Wells Fargo and Citigroup in the sum of $45 billion, bringing the total amount of repaid TARP funds to $164 billion. Wells Fargo repaid $25 billion under the Capital Purchase Program and Citigroup repaid $20 billion under the Targeted Investment Program, both of which will wind down at the end of this year. The Treasury estimates that total bank repayments should exceed $175 billion by the end of 2010.
Press Release

U.S. house prices rose 0.6% on a seasonally adjusted basis from September to October, according to the FHFA’s monthly House Price Index. The previously reported 0.0% change in September was revised to a 0.4% decline. For the 12 months ending in October, U.S. prices fell 1.9%. The U.S. index is 10.8% below its April 2007 peak.
Press Release

December 18, 2009

Peoples First Community Bank, Panama City, Florida, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Hancock Bank, Gulfport, Mississippi, to assume all of the deposits of Peoples First Community Bank.
Press Release

Citizens State Bank, New Baltimore, Michigan, is closed by the Michigan Office of Financial and Insurance Regulation, which appoints the FDIC as receiver. The FDIC creates the Deposit Insurance National Bank of New Baltimore, which will remain open for approximately 45 days to allow depositors access to their insured deposits and time to open accounts at other insured institutions.
Press Release

New South Federal Savings Bank, Irondale, Alabama, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Beal Bank, Plano, Texas, to assume all of the deposits of New South Federal Savings Bank.
Press Release 

The FDIC creates a bridge bank to take over the operations of Independent Bankers' Bank, Springfield, Illinois, after the bank was closed by the Illinois Department of Financial and Professional Regulation—Division of Banking, which appointed the FDIC as receiver. The newly created bank is Independent Bankers' Bank Bridge Bank, National Association. Independent Bankers' Bank did not take deposits directly from the general public nor did it make loans to consumers.
Press Release 

Imperial Capital Bank, La Jolla, California, is closed by the California Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with City National Bank, Los Angeles, California, to assume all of the deposits of Imperial Capital Bank.
Press Release

First Federal Bank of California, a Federal Savings Bank, Santa Monica, California, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with OneWest Bank, FSB, Pasadena, California, to assume all of the deposits of First Federal Bank of California.
Press Release 

The Treasury receives the first quarterly $1 billion repayment from General Motors as part of the company's accelerated plan to exit the U.S. Government's investments under the TARP. The total amount of repaid TARP funds is now $119 billion and an additional $45 billion in repayments is expected next week.

The Treasury today announces that Oaktree Capital Management, L.P., has completed an initial closing of a Public-Private Investment Fund (PPIF) established under the Legacy Securities Public-Private Investment Program (PPIP). All nine pre-qualified PPIP fund managers have now completed an initial closing. Oaktree has partnered on the PPIF with Arctic Slope Regional Corporation, a small and minority-owned business based in Alaska. To date, the PPIFs have completed initial and subsequent closings on approximately $6 billion of private sector equity capital which has been matched 100% by the Treasury, representing $12 billion of total equity capital. 

December 16, 2009

The Office of the Comptroller of the Currency (OCC) releases a list of Community Reinvestment Act performance evaluations that became public during the period of November 15, 2009 through December 14, 2009. Of the 25 evaluations made public this month, 4 were outstanding, 21 were satisfactory, none were needs to improve and none were substantial noncompliance.
Press Release

The Treasury announces it has priced a secondary public offering of 3,199,988 warrants to purchase common stock of TCF Financial Corporation at $3.00 per warrant. The net proceeds to Treasury from the offering are expected to be approximately $9,449,980.56. The closing is expected to occur on or about December 21, 2009, subject to customary closing conditions. 

December 14, 2009

The Federal Reserve offers $75 billion in 28-day credit through its Term Auction Facility (TAF) to depository institutions eligible to borrow under the primary credit program.
Press Release

The Treasury announces it has commenced a secondary public offering of approximately 3,199,988 warrants to purchase the common stock of TCF Financial Corporation. The proceeds of this sale will provide an additional return from Treasury's investment in TCF beyond the dividend payments it received on the related preferred stock.

December 11, 2009

Republic Federal Bank, National Association, Miami, Florida, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with 1st United Bank, Boca Raton, Florida, to assume all of the deposits of Republic Federal Bank, N.A.
Press Release

Valley Capital Bank, National Association, Mesa, Arizona, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Enterprise Bank & Trust, Clayton, Missouri, to assume all of the deposits of Valley Capital Bank.
Press Release

SolutionsBank, Overland Park, Kansas, is closed by the Office of the State Bank Commissioner of Kansas, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Arvest Bank, Fayetteville, Arkansas, to assume all of the deposits of SolutionsBank.
Press Release

December 8, 2009

The Treasury announces that it has commenced a secondary public offering of approximately 88,401,697 warrants to purchase the common stock of JPMorgan Chase & Co. (the "Company"). The offering is expected to price through a modified Dutch auction. Deutsche Bank Securities Inc., in its capacity as auction agent, has specified that the auction will commence at 8 a.m., Eastern Time, on December 10, 2009, and will close at 6:30 p.m., Eastern Time, on that same day (the "submission deadline"). During the auction period, potential bidders will be able to place bids at any price (in increments of $0.25) at or above the minimum bid price of $8.00 per warrant. 

December 4, 2009

The Federal Reserve announces the adoption of a final rule that would establish a process by which the Federal Reserve Bank of New York may determine the eligibility of credit rating agencies for the Term Asset-Backed Securities Loan Facility (TALF). The rule establishes criteria for determining the eligibility of agencies to issue credit ratings on asset-backed securities (ABS), other than those backed by commercial real estate, to be accepted as collateral for the TALF. The criteria include registration as a nationally recognized statistical rating organization with the SEC and experience issuing credit ratings specific to the types of assets accepted as collateral in the TALF.
Press Release

The Buckhead Community Bank, Atlanta, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC enters into a purchase and assumption agreement with State Bank and Trust Company, Macon, Georgia, to assume all of the deposits of The Buckhead Community Bank.
Press Release

First Security National Bank, Norcross, Georgia, is closed by the Office of the Comptroller of the Currency (OCC) which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with State Bank and Trust Company, Macon, Georgia, to assume all of the deposits of First Security National Bank.
Press Release

The Tattnall Bank, Reidsville, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with HeritageBank of the South, Albany, Georgia, to assume all of the deposits of The Tattnall Bank.
Press Release

AmTrust Bank, Cleveland, Ohio, is closed by the Office of Thrift Supervision (OTS), which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with New York Community Bank, Westbury, New York, to assume all of the deposits of AmTrust Bank.
Press Release

Benchmark Bank, Aurora, Illinois, is closed today by the Illinois Department of Financial and Professional Regulation, which appoints the FDIC as receiver.  The FDIC enters into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of Benchmark Bank.
Press Release

Greater Atlantic Bank, Reston, Virginia, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Sonabank, McLean, Virginia, to assume all of the deposits of Greater Atlantic Bank.
Press Release

The Treasury announces that it priced a secondary public offering of 12,657,960 warrants to purchase common stock of Capital One Financial Corporation at $11.75 per warrant. The net proceeds to Treasury from the offering are expected to be approximately $146,500,064.55. The warrants have been authorized for listing on the New York Stock Exchange under the symbol "COF WS." The closing is expected to occur on or about December 9, 2009, subject to customary closing conditions. This offering represents Treasury's sale of its remaining investment in the Company. 

December 2, 2009

The FDIC releases the findings of the National Survey of Unbanked and Underbanked Households, which was conducted on behalf of the FDIC by the U.S. Bureau of the Census. The study reveals that more than 25.6% of all households in the United States are unbanked or underbanked and that those households are disproportionately low-income and/or minority. According to the study, minorities more likely to be unbanked include blacks (21.7% of black households), Hispanics (19.3%), and American Indian/Alaskans (15.6%). Racial groups less likely to be unbanked are Asians (3.5%) and whites (3.3%).
Press Release

December 1, 2009

The Treasury commences a secondary public offering of warrants to purchase the common stock of Capital One Financial Corporation. Deutsche Bank Securities Inc., in its capacity as auction agent, has specified that the auction will commence at 8 a.m., Eastern Time, on December 3, 2009, and will close at 6:30 p.m. on that same day. The auction procedures, and the strike price, expiration, and other terms of the warrants are described in the preliminary prospectus supplement available on the SEC's Web site.
Press Release

November 30, 2009

The Federal Reserve offers $25 billion in 42-day credit through its Term Auction Facility (TAF) to depository institutions eligible to borrow under the primary credit program.
Press Release

The Treasury announces that Marathon Asset Management, L.P. has completed an initial closing of a Public-Private Investment Fund (PPIF) established under the Legacy Securities Public-Private Investment Program. To date, PPIFs have completed initial and subsequent closings on approximately $5.07 billion of private sector equity capital which has been matched 100% by the Treasury, representing $10.13 billion of total equity capital. The Treasury has also provided $10.13 billion of debt capital, representing $20.26 billion of total purchasing power.

November 24, 2009

According to the FHFA’s seasonally adjusted purchase-only house price index (HPI), U.S. house prices rose modestly in the third quarter of 2009. Calculated using home sales price information from Fannie Mae and Freddie Mac-acquired mortgages, the HPI was 0.2% higher on a seasonally adjusted basis in the third quarter than in the second quarter of 2009. Over the past year, seasonally adjusted prices fell 3.8% from the third quarter of 2008 to the third quarter of 2009.
Press Release

November 20, 2009

Commerce Bank of Southwest Florida, Fort Myers, Florida, is closed by the Florida Office of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Commerce Bank of Southwest Florida.
Press Release

The OCC releases a list of Community Reinvestment Act performance evaluations that became public during the period of October 15, 2009 through November 14, 2009. Of the 27 evaluations made public this month, 2 were outstanding, 25 were satisfactory, none were needs to improve and none were substantial noncompliance.
Press Release

November 19, 2009

The Treasury announces its intention to dispose of several warrant positions with respect to JP Morgan Chase & Co., Capital One Financial Corporation and TCF Financial Corporation, received in consideration for investments made under the Capital Purchase Program. Each of these banks has fully repurchased the Treasury's preferred stock investment. The Treasury intends to sell the warrants through registered public offerings, executed using a modified Dutch auction methodology that establishes a market price by allowing investors to submit bids at specified increments above a minimum price specified for each auction.
U.S. Treasury Announcement

November 17, 2009

Federal Reserve announces that, in light of the continued improvement in financial market conditions, it approved a reduction in the maximum maturity of primary credit loans at the discount window for depository institutions to 28 days from 90 days effective January 14, 2010. Primary credit loans will remain eligible for renewal upon request of the borrower.
Press Release

November 16, 2009

The Federal Reserve offers $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

November 13, 2009

Century Bank, Federal Savings Bank, Sarasota, Florida, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with IBERIABANK, Lafayette, Louisiana, to assume all of the deposits of Century Bank, FSB.
Press Release

Orion Bank, Naples, Florida, is closed today by the Florida Office of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with IBERIABANK, Lafayette, Louisiana, to assume all of the deposits of Orion Bank.
Press Release

Pacific Coast National Bank, San Clemente, California, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Sunwest Bank, Tustin, California, to assume all of the deposits of Pacific Coast National Bank.
Press Release

November 9, 2009

The Federal Reserve announced that 9 of the 10 Bank Holding Companies determined in the Supervisory Capital Assessment Program to need to raise capital or improve the quality of their capital to withstand a worse-than-expected economic scenario now have increased their capital sufficiently to meet or exceed their required capital buffers. The one exception, GMAC, is expected to meet its remaining buffer need by accessing the TARP Automotive Industry Financing Program, and is in discussions with the U.S. Treasury on the structure of its investment.
Press Release

November 6, 2009

United Security Bank, Sparta, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Ameris Bank, Moultrie, Georgia, to assume all of the deposits of United Security Bank.
Press Release

Home Federal Savings Bank, Detroit, Michigan, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Liberty Bank and Trust Company, New Orleans, Louisiana, to assume all of the deposits of Home Federal Savings Bank.
Press Release

Prosperan Bank, Oakdale, Minnesota, is closed by the Minnesota Department of Commerce, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Alerus Financial, National Association, Grand Forks, North Dakota, to assume all of the deposits of Prosperan Bank.
Press Release

Gateway Bank of St. Louis, St. Louis, Missouri, is closed by the Missouri Division of Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Central Bank of Kansas City, to assume all of the deposits of Gateway Bank of St. Louis.
Press Release

United Commercial Bank, San Francisco, California, is closed by the California Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with East West Bank, Pasadena, California, to assume all of the deposits of United Commercial Bank. This agreement included all U.S. branches of United Commercial Bank, the Hong Kong branch of United Commercial Bank, and the subsidiary of United Commercial Bank headquartered in Shanghai, China, United Commercial Bank (UCB-China).
Press Release

November 5, 2009

The Treasury announces that RLJ Western Asset Management, LP, has completed an initial closing of a Public-Private Investment Fund (PPIF) established under the Legacy Securities Public-Private Investment Program. To date, seven PPIFs have completed initial closings on approximately $4.09 billion of private sector equity capital which has been matched 100% by the Treasury, representing $8.18 billion of total equity capital. The Treasury has also provided $8.18 billion of debt capital, representing $16.36 billion of total purchasing power for all PPIFs.

November 2, 2009

The Federal Reserve offers $25 billion in 70-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

October 30, 2009

The FDIC enters into a purchase and assumption agreement with U.S. Bank, NA, of Minneapolis, Minnesota, a wholly-owned subsidiary of U.S. Bancorp, to assume all of the deposits and essentially all of the assets of nine failed banks. The nine banks were closed by federal and state bank regulators, which appointed the FDIC as receiver.
Press Release

The Federal Reserve announces that a temporary exemption to the limitations in section 23A of the Federal Reserve Act, instituted as part of the response to the financial crisis, will expire as scheduled on October 30, 2009. The exemption, which was subject to various conditions to promote safety and soundness, allowed all insured depository institutions to provide liquidity to their affiliates for assets typically funded in the tri-party repo market.
Press Release

The FDIC, in coordination with the other member Agencies of the Federal Financial Institutions Examination Council, adopted a policy statement today supporting prudent commercial real estate loan workouts. The policy statement stresses that performing loans, including those that have been renewed or restructured on reasonable modified terms, made to creditworthy borrowers will not be subject to adverse classification solely because the value of the underlying collateral declined.
Press Release

Treasury Secretary Tim Geithner announces $5 billion in New Markets Tax Credit awards, including $1.5 billion made possible through the American Recovery and Reinvestment Act, for more than 90 organizations in communities around the country.

The FHFA sends two reports, "Default Risk Evaluation in the Single-Family Mortgage Market" and the Annual Housing Report, to Congress pursuant to requirements of the Housing and Economic Recovery Act, passed in July 2008. The reports discuss a number of topics, including mortgage risk, Fannie Mae’s and Freddie Mac’s housing goal performance, and key developments in the housing market.
Press Release

October 27, 2009

The Treasury announces the allocation of $2.2 billion in Clean Renewable Energy Bonds for 805 recipients across the country. Funded by the Energy Improvement and Extension Act of 2008 and the American Recovery and Reinvestment Act of 2009, these energy bonds help government agencies, public power providers, and cooperative electric companies obtain lower cost financing for clean energy development projects.

The FHFA reports that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased 7 basis points to 5.23% in September. The average interest rate on 15-year, fixed-rate loans of $417,000 or less increased 15 basis points to 4.77% in September.
Press Release

October 23, 2009

Partners Bank, Naples, Florida, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Stonegate Bank, Fort Lauderdale, Florida, to assume all of the deposits of Partners Bank.
Press Release

American United Bank, Lawrenceville, Georgia, is closed by the Georgia Department of Banking & Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Ameris Bank, Moultrie, Georgia, to assume all of the deposits of American United Bank.
Press Release

Hillcrest Bank Florida, Naples, Florida, is closed by the Florida Office of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Stonegate Bank, Fort Lauderdale, Florida, to assume all of the deposits of Hillcrest Bank Florida.
Press Release

Flagship National Bank, Bradenton, Florida, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First Federal Bank of Florida, Lake City, Florida, to assume all of the deposits of Flagship National Bank.
Press Release

Bank of Elmwood, Racine, Wisconsin, is closed by the Wisconsin Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Tri City National Bank, Oak Creek, Wisconsin, to assume all of the deposits of Bank of Elmwood.
Press Release

Riverview Community Bank, Otsego, Minnesota, is closed by the Minnesota Department of Commerce, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Riverview Community Bank.
Press Release

First DuPage Bank, Westmont, Illinois, is closed by the Illinois Department of Financial & Professional Regulation – Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First Midwest Bank, Itasca, Illinois, to assume all of the deposits of First DuPage Bank.
Press Release

October 22, 2009

Special Master for TARP Executive Compensation releases determinations on the compensation packages for the top executives at firms that received exceptional TARP assistance (AIG, Citigroup, Bank of America, Chrysler, GM, GMAC and Chrysler Financial). The determinations relate to: (i) the reformation of pay practices to align compensation with long-term value creation and financial stability, (ii) the significant reduction of compensation across the board, (iii) the requirement that salaries be paid in company stock held over the long term, (iv) the requirement that incentive compensation be paid in the form of long term restricted stock and be contingent on performance and TARP repayment and (v) the requirement of immediate reform of practices not aligned with shareholder and taxpayer interests. 

U.S. home prices fell 0.3% on a seasonally-adjusted basis from July to August, according to the Federal Housing Finance Agency’s (FHFA) monthly House Price Index. The previously reported 0.3% increase in July was unrevised. For the 12 months ending in August, U.S. prices fell 3.6%. The U.S. index is 10.7% below its April 2007 peak.
Press Release

 October 19, 2009

The Federal Reserve offers $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

Fannie Mae and Freddie Mac’s trial mortgage loan modifications under the Home Affordable Modification Program were up more than 40% in September 2009 from the previous month. Completed loan modifications are also expected to increase when borrowers successfully complete the trial period and provide required documentation. The data was released as part of the FHFA’s monthly Foreclosure Prevention Report for July.

October 16, 2009

San Joaquin Bank, Bakersfield, California, is closed by the California Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Citizens Business Bank, Ontario, California, to assume all of the deposits of San Joaquin Bank.
Press Release

October 14, 2009

OCC Comptroller John C. Dugan tells the Senate Banking Subcommittee on Financial Institutions that while credit quality continues to worsen, the majority of national banks have the financial capacity to withstand declining asset quality. "Net capital levels in the national banking system have increased by more than $186 billion over the last two years, and net increases to loan loss reserves have exceeded $92 billion. While these increases have considerably strengthened national banks, we anticipate additional capital and reserves will be needed to absorb additional potential losses in banks’ portfolios."
Press Release

October 8, 2009

The Treasury and HUD announce that more than 500,000 trial loan modifications are in progress under the Making Home Affordable program.

October 5, 2009

The Federal Reserve offers $50 billion in 70-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

The Federal Reserve announces two changes to the procedures for evaluating asset-backed securities (ABS) pledged to the TALF. First, the Federal Reserve has proposed a rule that would establish criteria for the Federal Reserve Bank of New York to determine the Nationally Recognized Statistical Rating Organizations whose ratings are accepted for determining the eligibility of ABS to be pledged as collateral at the TALF. Second, the Federal Reserve Bank of New York will conduct a formal risk assessment of all proposed collateral-ABS in addition to commercial mortgage-backed securities, which are already subject to a formal risk assessment.
Press Release 

The Treasury announces three additional initial closings of Public-Private Investment Fund established under the Legacy Securities Public-Private Investment Program. AllianceBernstein, LP and its sub-advisors Greenfield Partners, LLC and Rialto Capital Management, LLC; BlackRock, Inc.; and Wellington Management Company, LLP have completed initial closings, each with at least $500 million of committed equity capital from private investors bringing the total number of initial closings completed to five and total committed equity and debt capital to $12.27 billion.

The FHFA announces a FY 2010 budget of $139.3 million, an increase of 15% from the FHFA FY 2009 budget. The FHFA will also issue a special assessment of $10.4 million on Fannie Mae and Freddie Mac for the costs of certain conservatorship activities.
Press Release

October 2, 2009

Warren Bank, Warren, Michigan, is closed by the Michigan Office of Financial and Insurance Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with The Huntington National Bank, Columbus, Ohio, to assume all of the deposits of Warren Bank.
Press Release

Jennings State Bank, Spring Grove, Minnesota, is closed by the Minnesota Department of Commerce, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Jennings State Bank.
Press Release

Southern Colorado National Bank, Pueblo, Colorado, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Legacy Bank, Wiley, Colorado, to assume all of the deposits of Southern Colorado National Bank.
Press Release

September 30, 2009

The Treasury announces the initial closings of Public-Private Investment Funds established under the Legacy Securities Public-Private Investment Program. Invesco Ltd. (Invesco Legacy Securities Master Fund, L.P.) and The TCW Group, Inc. (UST/TCW Senior Mortgage Securities Fund, L.P.) have both completed initial closings, each with at least $500 million of committed equity capital from private investors.

September 29, 2009

The FDIC adopts a Notice of Proposed Rulemaking that would require insured institutions to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009 and for all of 2010, 2011 and 2012. The FDIC estimates that the total prepaid assessments collected would be approximately $45 billion.
Press Release

In its report on refinance volumes and the Making Home Affordable Refinance Program, the Federal Housing Finance Agency (FHFA) announces that Fannie Mae and Freddie Mac have refinanced more than 3.2 million mortgage loans from January-August 2009. The report also shows an increase in refinancing in the first half of the year as mortgage rates dropped. Refinance volumes fell from July to August in response to a sharp rise in mortgage rates in June.
Press Release

September 25, 2009

Georgian Bank, Atlanta, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First Citizens Bank and Trust Company, Inc., Columbia, South Carolina, to assume all of the deposits of Georgian Bank.
Press Release

September 24, 2009

Credit quality declined sharply for loan commitments of $20 million or more held by multiple federally supervised institutions, according to the 32nd annual review of Shared National Credits. The credit risk of these large loan commitments was shared among U.S. bank organizations, foreign bank organizations, and nonbanks such as securitization pools, hedge funds, insurance companies, and pension funds.
Press Release

September 22, 2009

Treasury Secretary Tim Geithner and Energy Secretary Steven Chu announce $550 million in Recovery Act awards through its 1603 program, bringing the total to more than $1 billion awarded to date to companies committed to investing in domestic renewable energy production.  Under this program, the federal government provides a cash payment in lieu of a tax credit totaling 30% of the qualifying cost of the project; for each federal dollar spent in payments, more than two dollars are spent in private sector investments.

U.S. home prices rose 0.3% on a seasonally-adjusted basis from June to July, according to the Federal Housing Finance Agency’s (FHFA) monthly House Price Index. The previously reported 0.5% increase in June was revised downward to a 0.1% increase. For the 12 months ending in July, U.S. prices fell 4.2%. The U.S. index is 10.5% below its April 2007 peak.
Press Release

September 21, 2009

The Federal Reserve offers $75 billion in 28-day credit through its Term Auction Facility (TAF) to depository institutions eligible to borrow under the primary credit program.
Press Release

September 18, 2009

Federal and state regulators close Irwin Union Bank, F.S.B., Louisville, Kentucky, and Irwin Union Bank and Trust Company, Columbus, Indiana, respectively. The institutions are banking subsidiaries of Irwin Financial Corporation, Columbus, Indiana. The regulators name the FDIC as the receiver for the banks. The FDIC enters into a purchase and assumption agreement with First Financial Bank, National Association, Hamilton, Ohio, to assume all of the deposits of the two banks.
Press Release

The Treasury announces that the Guarantee Program for Money Market Funds expires today. Since inception, the Treasury has had no losses under the program and earned approximately $1.2 billion in participation fees.

September 17, 2009

The Office of the Comptroller of the Currency (OCC) releases a list of Community Reinvestment Act performance evaluations that became public during the period of August 15, 2009 through September 14, 2009. Of the 35 evaluations made public this month, 5 were outstanding, 30 were satisfactory, none were needs to improve and none were substantial noncompliance.
Press Release

September 16, 2009

The FDIC signs a bid confirmation letter with Residential Credit Solutions (RCS), the winning bidder in a pilot sale of receivership assets that the FDIC is conducting to test the funding mechanism for the Legacy Loans Program (LLP). A total of 12 consortiums bid to purchase an ownership interest in a limited liability company, to which the FDIC will convey a portfolio of residential mortgage loans with an unpaid principal balance of approximately $1.3 billion owned by the FDIC as Receiver of Franklin Bank, SSB, Houston, Texas.
Press Release

September 15, 2009

As part of the Administration's efforts to highlight the local impact of the American Recovery and Reinvestment Act, Treasury Deputy Secretary Neal Wolin and New Mexico Governor Bill Richardson announce $1 billion in stimulus bond authority for 58 tribes across the country.

September 14, 2009

The Treasury issues a report describing the next phase of the government's financial stabilization and rehabilitation policies to provide the public with a status update on these programs and an explanation of the Administration's strategy going forward. "We are now in a position to adjust our strategy as we move from crisis response to recovery, from rescuing the economy to repairing and rebuilding the foundation for future growth," said Treasury Secretary Tim Geithner.

September 11, 2009

As part of its loss-share agreement with acquirers of failed FDIC-insured institutions, the FDIC encourages its loss-share partner institutions to consider temporarily reducing mortgage payments for borrowers who are unemployed or underemployed.
Press Release

Corus Bank, National Association, Chicago, Illinois, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of Corus Bank, N.A.
Press Release

Brickwell Community Bank, Woodbury, Minnesota, is closed by the Minnesota Department of Commerce, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with CorTrust Bank N.A., Mitchell, South Dakota, to assume all of the deposits of Brickwell Community Bank.
Press Release

Venture Bank, Lacy, Washington, is closed by the Washington Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, North Carolina, to assume all of the deposits of Venture Bank.
Press Release

September 9, 2009

The FDIC adopts a Notice of Proposed Rulemaking (NPR) that reaffirms the expiration of the debt guarantee component of the Temporary Liquidity Guarantee Program on October 31, 2009. Under the NPR, the FDIC will seek comment on whether a temporary emergency facility should be left in place for six months after the expiration of the current program.
Press Release

September 8, 2009

The Federal Reserve offers $75 billion in 84-day credit through its Term Auction Facility to depository institutions eligible to borrow under the primary credit program.
Press Release

September 4, 2009

First Bank of Kansas City, Kansas City, Missouri, is closed by the Missouri Division of Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Great American Bank, De Soto, Kansas, to assume all of the deposits of First Bank of Kansas City.
Press Release

InBank, Oak Forest, Illinois, is closed by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with MB Financial Bank, National Association, Chicago, Illinois, to assume all of the deposits of InBank, except certain brokered deposits.
Press Release

Vantus Bank, Sioux City, Iowa, is closed by Office of Thrift Supervision (OTS), which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Great Southern Bank, Springfield, Missouri, to assume all of the deposits of Vantus Bank.
Press Release

The FDIC approves the payout of the insured deposits of Platinum Community Bank, Rolling Meadows, Illinois. The bank is closed by OTS, which appoints the FDIC as receiver. The FDIC enters into an agreement with MB Financial Bank, National Association, to accept the failed bank's direct deposits from the federal government, such as Social Security and Veterans' payments.
Press Release

First State Bank, Flagstaff, Arizona, is closed by the Arizona Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Sunwest Bank, Tustin, California, to assume all of the deposits of First State Bank.
Press Release

September 1, 2009

Treasury Secretary Tim Geithner and Energy Secretary Steven Chu announce $502 million in the first round of awards from an American Recovery and Reinvestment Act program that provides cash assistance to energy production companies in place of earned tax credits. The program is expected to provide more than $3 billion in financial support for clean energy projects by providing direct payments in lieu of tax credits. These payments will support an estimated 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities in all regions of the country over the life of the program.

August 28, 2009

The Federal Reserve announces that the amounts of TAF credit offered at each of the two auctions in September will be reduced to $75 billion from $100 billion in August. Specifically, the Federal Reserve will offer $75 billion of 84-day credit on Tuesday, September 8, and $75 billion of 28-day credit on Monday, September 21.
Press Release

Bradford Bank, Baltimore, Maryland, is closed by OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Manufacturers and Traders Trust Company, Buffalo, New York, to assume all of the deposits of Bradford Bank.
Press Release

Mainstreet Bank, Forest Lake, Minnesota, is closed by the Minnesota Department of Commerce, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Central Bank, Stillwater, Minnesota, to assume all of the deposits of Mainstreet Bank.
Press Release

Affinity Bank, Ventura, California, is closed by the California Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Pacific Western Bank, San Diego, California, to assume all of the deposits of Affinity Bank.
Press Release

August 27, 2009

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) report an aggregate net loss of $3.7 billion in the second quarter of 2009, a decline of $8.5 billion from the $4.8 billion in profits the industry reported in the second quarter of 2008. Insured institutions earned $424 million in net operating income during this latest quarter even after a special assessment of $5.5 billion to bolster the FDIC's insurance fund. However, one-time losses and other items totaling $4.1 billion pulled the industry results into negative territory.
Press Release

August 26, 2009

The FDIC Board today adopted a final Statement of Policy on the Acquisition of Failed Insured Depository Institutions. This policy statement provides guidance to investors interested in acquiring or investing in the deposit liabilities of failed banks or thrifts about the standards they will be expected to meet in order to qualify to bid on a failed institution.
Press Release

Treasury Announces $309 Million in Recovery Act Funds to Create Jobs, Provide Affordable Housing As part of the Obama Administration's effort to strengthen communities and ease pressures on the housing market, the U.S. Department of the Treasury today announced $309 million in American Recovery and Reinvestment Act (Recovery Act) funding to spur the development of affordable housing units in Arizona, Connecticut, North Carolina, North Dakota, Pennsylvania, South Carolina, and Vermont.
Press Release

August 25, 2009

The Securities and Exchange Commission Chairman Mary Schapiro announces the appointment of James L. Kroeker as the Chief Accountant in the SEC's Office of Chief Accountant. In this capacity, Mr. Kroeker will oversee accounting interpretations, professional practice issues, and international accounting matters. Mr. Kroeker replaces Conrad W. Hewitt, who retired from government service in January 2009.
Press Release

August 24, 2009

The Federal Reserve offers $100 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

August 21, 2009

The Office of the Comptroller of the Currency (OCC) releases new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks.
Press Release

August 19, 2009

The Federal Reserve announces a new schedule of margins applicable for collateral pledged by depository institutions to secure discount window and TAF loans and for payment system risk purposes.
Press Release

August 17, 2009

The Federal Reserve and the Treasury announce the approval of an extension to the TALF through March 2010 and that, at this time, further additions to the types of collateral that are eligible for the facility is not anticipated. The securities eligible for collateralizing TALF loans include the major types of newly issued, triple-A-rated asset-backed securities backed by loans to consumers and businesses, and newly issued and legacy triple-A-rated commercial mortgage-backed securities.
Press Release

August 14, 2009

Colonial Bank, Montgomery, Alabama, is closed by the Alabama State Banking Department, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Branch Banking and Trust, Winston-Salem, North Carolina, to assume all of the deposits of Colonial Bank.
Press Release

Union Bank, National Association, Gilbert, Arizona, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with MidFirst Bank, Oklahoma City, Oklahoma, to assume all of the deposits of Union Bank, National Association, excluding those from brokers.
Press Release

Community Bank of Arizona, Phoenix, Arizona, is closed by the Arizona Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with MidFirst Bank, Oklahoma City, Oklahoma, to assume all of the deposits of Community Bank of Arizona.
Press Release

Community Bank of Nevada, Las Vegas, Nevada, is closed by the State Commissioner, by Order of the Nevada Financial Institutions Division, which appoints the FDIC as receiver. The FDIC creates the Deposit Insurance National Bank of Las Vegas (DINB), which will remain open for approximately 30 days to allow depositors access to their insured deposits and time to open accounts at other insured institutions. At closing, the receiver immediately transferred to the DINB all insured deposits of Community Bank of Nevada, except for brokered deposits, certificates of deposit and individual retirement accounts. The receiver also transferred to the DINB all secured public unit deposits.
Press Release

Dwelling House Savings and Loan Association, Pittsburgh, Pennsylvania, is closed by OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with PNC Bank, National Association, Pittsburgh, Pennsylvania, to assume all of the deposits of Dwelling House Savings and Loan Association.
Press Release

August 13, 2009

The Treasury and the Department of Energy announce a program to award $2.3 billion in tax credits to manufacturers of advanced energy equipment. Authorized by the American Recovery and Reinvestment Act, this new program will provide tax credits to manufacturers who produce clean energy equipment. Credits are available for two years or until the cap is reached. Companies can file applications for the first round of credit awards through October 16, 2009, and can expect to learn whether their applications are successful by January 15, 2010.

August 10, 2009

The Federal Reserve offers $100 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

The Federal Reserve publishes its annual adjustment of the dollar amount of fees that triggers additional disclosure requirements under the Truth in Lending Act for home mortgage loans that bear rates or fees above a certain amount. The dollar amount of the fee-based trigger has been adjusted to $579 for 2010 based on the annual percentage change reflected in the Consumer Price Index that was in effect on June 1, 2009.
Press Release

August 7, 2009

First State Bank, Sarasota, Florida, is closed by the Florida Office of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume all of the deposits of First State Bank, excluding those from brokers.
Press Release

Community National Bank of Sarasota County, Venice, Florida, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume all of the deposits of Community National Bank of Sarasota County.
Press Release

Community First Bank, Prineville, Oregon, is closed by the Oregon Division of Finance & Corporate Securities, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Home Federal Bank, Nampa, Idaho, to assume all of the deposits of Community First Bank, excluding those from brokers.
Press Release

August 4, 2009

The Administration releases its first monthly Servicer Performance Report detailing the progress to date of the Making Home Affordable (MHA) loan modification program. Servicers covering more than 85% of loans in the country are already modifying loans under the program. More than 400,000 modification offers have been extended and more than 230,000 trial modifications have begun.

August 3, 2009

The Treasury announces its current estimates of marketable borrowing for the July – September 2009 and the October – December 2009 quarters. During the July – September 2009 quarter, the Treasury expects to borrow $406 billion of marketable debt, assuming an end-of-September cash balance of $270 billion, which includes $200 billion for the Supplementary Financing Program (SFP). During the October – December quarter, the Treasury expects to borrow $486 billion of marketable debt, assuming an end-of-December cash balance of $270 billion, which includes $200 billion for the SFP.

The FHFA releases its latest Foreclosure Prevention Report detailing actions taken by Fannie Mae and Freddie Mac to prevent foreclosures. Completed loan modifications fell for second consecutive month to approximately 10,400. Loan modifications accounted for 47% of all completed foreclosure prevention actions. Completed short sales increased 3% to nearly 3,700, more than three times the volume one year earlier.

July 31, 2009

The FDIC announces the next step in the development of the Legacy Loans Program (LLP), part of the Public-Private Investment Program announced in March by the Treasury, the Federal Reserve, and the FDIC. The first test using the LLP funding mechanism commenced this week. In the transaction to be offered, the receivership will transfer a portfolio of residential mortgage loans on a servicing released basis to a limited liability company (LLC) in exchange for an ownership interest in the LLC. The LLC also will sell an equity interest to an accredited investor, who will be responsible for managing the portfolio of mortgage loans.
Press Release

First State Bank of Altus, Altus, Oklahoma, is closed by the Oklahoma State Banking Department, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Herring Bank, Amarillo, Texas, to assume all of the deposits of First State Bank of Altus.
Press Release

Integrity Bank, Jupiter, Florida, is closed by the Florida Office of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Stonegate Bank, Fort Lauderdale, Florida, to assume all of the deposits of Integrity Bank.
Press Release

Peoples Community Bank, West Chester, Ohio, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First Financial Bank, National Association, Hamilton, Ohio, to assume all of the deposits of Peoples Community Bank.
Press Release

First BankAmericano, Elizabeth, New Jersey, is closed by the New Jersey Department of Banking and Insurance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Crown Bank, Brick, New Jersey, to assume all of the deposits of First BankAmericano.
Press Release

Mutual Bank, Harvey, Illinois, is closed by the Illinois Department of Financial Professional Regulation - Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with United Central Bank, Garland, Texas, to assume all of the deposits of Mutual Bank.
Press Release

The Treasury and the Department of Energy announce they are now accepting applications for a program that will make direct payments in lieu of tax credits to companies that create and place in service renewable energy facilities. The Departments estimate distributing at least $3 billion in financial support to approximately 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities. The funding for this effort is made available through the American Recovery and Reinvestment Act.

July 30, 2009

The Treasury announces nearly $90 million in American Recovery and Reinvestment Act funding to spur the development of affordable housing units in Colorado, Delaware, Illinois, Maine and Nebraska.

July 28, 2009

The Federal Housing Finance Agency (FHFA) reports that the average interest rate on conventional 30-year, fixed-rate mortgage loans of $417,000 or less increased 24 basis points to 5.12% in June. The average interest rate on 15-year, fixed-rate loans of $417,000 or less increased 9 basis points to 4.80% in June.
Press Release

July 27, 2009

The SEC announces several actions intended to protect against abusive short sales and make more short sale information available to the public: first, the adoption of Rule 204, which requires broker-dealers to promptly purchase or borrow securities to deliver on a short sale; second, the effort to work together with several self-regulatory organizations to make short-sale volume and transaction data available; and third, the intention to hold a public roundtable to discuss securities lending, pre-borrowing and possible additional short sale disclosures.
Press Release

The Federal Reserve offers $125 billion in 28-day credit through its Term Auction Facility (TAF) to depository institutions eligible to borrow under the primary credit program.
Press Release

July 24, 2009

Waterford Village Bank of Clarence, New York, is closed by the New York State Banking Department, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Evans Bank, N.A., of Angola, New York, to assume all of the deposits of Waterford Village Bank.
Press Release

The six bank subsidiaries of Security Bank Corporation of Macon, Georgia, are closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with State Bank and Trust Company of Pinehurst, Georgia, to assume all of the deposits of the six bank subsidiaries of Security Bank Corporation.
Press Release

July 23, 2009

The Federal Reserve proposes significant changes to Regulation Z (Truth in Lending) intended to improve the disclosures consumers receive in connection with closed-end mortgages and home-equity lines of credit. These changes, offered for public comment, reflect the result of consumer testing conducted as part of a comprehensive review of the rules for home-secured credit. The amendments would also provide new consumer protections for all home-secured credit.
Press Release

July 22, 2009

The Treasury announces the disbursement of $600 million in American Recovery and Reinvestment Act funds. Available for tax years 2009 and 2010, the Making Work Pay credit is 6.2% of a taxpayer's earned income, subject to certain limitations. More than one million workers in Puerto Rico are expected to qualify for the tax credit this year.

U.S. home prices rose 0.9% on a seasonally adjusted basis from April to May, according to the FHFA’s monthly House Price Index. The previously reported 0.1% decline in April was revised to a 0.3% decline. For the 12 months ending in May, U.S. prices fell 5.6%. The U.S. index is 10.7% below its April 2007 peak.
Press Release

July 21, 2009

The OCC releases its annual Survey of Credit Underwriting Practices and reports that commercial and retail underwriting standards tightened for the second consecutive year following a four-year period of eased underwriting. The 2009 survey is a compilation of examiner observations and assessments of credit underwriting standards at the largest national banks.
Press Release

July 20, 2009

The Treasury provides an update on issuances of the Build America Bonds program, which was created by the American Recovery and Reinvestment Act and allows state and local governments to obtain funding at lower borrowing costs for projects such as construction of schools and hospitals, development of transportation infrastructure, and water and sewer upgrades. Since April 3, 2009, there has been $17.4 billion in Build America Bond issuance and Build America Bonds constitute about 16.6% of municipal bonds issuances.

The Financial Stability Oversight Board issues its third quarterly report to Congress on the Emergency Economic Stabilization Act of 2008 (EESA), which covers the period from April 1 to June 30. The report highlights oversight activities during the second quarter, presents an evaluation of the effects thus far of the policies and programs implemented under the TARP, and describes the programs, policies, administrative actions, and financial commitments of the Treasury under the TARP during the quarterly period.
Press Release

July 17, 2009

First Piedmont Bank, Winder, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First American Bank and Trust Company, Athens, Georgia, to assume all of the deposits of First Piedmont Bank.
Press Release

BankFirst, Sioux Falls, South Dakota, is closed by the South Dakota Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Alerus Financial, National Association, Grand Forks, North Dakota, to assume all of the deposits of BankFirst.
Press Release

Vineyard Bank, National Association, Rancho Cucamonga, California, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with California Bank & Trust, San Diego, California, to assume all of the deposits of Vineyard Bank, N.A., excluding those from brokers.
Press Release

Temecula Valley Bank, Temecula, California, is closed by the California Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First-Citizens Bank and Trust Company, Raleigh, North Carolina, to assume all of the deposits of Temecula Valley Bank, excluding those from brokers.
Press Release

The OCC releases a list of Community Reinvestment Act performance evaluations. The list contains only national banks and insured federal branches of foreign banks that have received ratings. Of the 46 evaluations made public this month, 7 were outstanding, 39 were satisfactory, and none were needs to improve. None were substantial noncompliance.
Press Release

July 15, 2009

The Federal Reserve approves an interim final rule amending Regulation Z (Truth in Lending) to require creditors to increase the amount of notice consumers receive before the rate on a credit card account is increased or a significant change is made to the account's terms. The amendments also allow consumers to reject such increases and changes by informing the creditor before the increase or change goes into effect.
Press Release

The Treasury releases results from its monthly bank lending survey for May with data from the top 21 recipients of government investments through the Capital Purchase Program. The May survey found that outstanding loan balances were flat in May and there was modest growth in new loan originations in the 21 banks surveyed.

FHFA releases its latest Foreclosure Prevention Report detailing actions taken by Fannie Mae and Freddie Mac to prevent foreclosures. The report includes loan modification data under FHFA’s Streamlined Modification Program, which was initiated in November 2008 but ended in April 2009.

July 13, 2009

The Federal Reserve offers $125 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

July 10, 2009

Bank of Wyoming, Thermopolis, Wyoming, is closed by the State of Wyoming, Department of Audit, Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Central Bank & Trust, Lander, Wyoming, to assume all of the deposits of Bank of Wyoming.
Press Release

The Treasury announces $486 million in American Recovery and Reinvestment Act funding to spur the development of affordable housing units in Alabama, Arkansas, Connecticut, Georgia, Louisiana, Maryland, Massachusetts, Montana, New Hampshire, New Mexico, the Virgin Islands, and Vermont.

July 9, 2009

The Treasury and the Department of Energy announce an estimated $3 billion for the development of renewable energy projects and made available the guidance businesses will need to submit a successful application. Funded through the American Recovery and Reinvestment Act, the program will provide direct payments in lieu of tax credits in support of an estimated 5,000 bio-mass, solar, wind, and other types of renewable energy production facilities.

The FHFA releases its first Strategic Plan since it was created nearly one year ago in the Housing and Economic Recovery Act. The plan details the goals and objectives for 2009-2014 that will guide the FHFA in its actions to restore the financial health of Fannie Mae, Freddie Mac, and enhance the Federal Home Loan Bank System.

July 8, 2009

The Treasury, the Federal Reserve and the FDIC announce the launch of the Legacy Securities Public-Private Investment Program, as part of the Financial Stability Plan announced in February. The Legacy Securities program is designed to support market functioning and facilitate price discovery in the asset-backed securities markets, allowing banks and other financial institutions to re-deploy capital and extend new credit to households and businesses.

July 2, 2009

The Elizabeth State Bank, Elizabeth, Illinois, is closed by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Galena State Bank and Trust, Galena, Illinois, to assume all of the deposits of The Elizabeth State Bank.
Press Release

The First National Bank of Danville, Danville, Illinois, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First Financial Bank, N.A., Terre Haute, Indiana, to assume all of the deposits of The First National Bank of Danville.
Press Release

Millennium State Bank of Texas, Dallas, Texas, is closed by the Texas Department of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with State Bank of Texas, Irving, Texas, to assume all of the deposits of Millennium State Bank of Texas.
Press Release

Founders Bank, Worth, Illinois, is closed by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with The PrivateBank and Trust Company, Chicago, Illinois, to assume all of the deposits of Founders Bank.
Press Release

The SEC votes on three measures intended to better inform and empower investors to improve corporate governance and help restore investor confidence. The SEC proposed requiring public companies receiving money from TARP to provide a shareholder vote on executive pay in their proxy solicitations. The Commission also voted to propose better disclosure of executive compensation at public companies in their proxy statements, and approved a New York Stock Exchange rule change to prohibit brokers from voting proxies in corporate elections without instructions from their customers.
Press Release

July 1, 2009

The John Warner Bank, Clinton, Illinois, is closed by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with State Bank of Lincoln, Lincoln, Illinois, to assume all of the deposits of The John Warner Bank.
Press Release

The First State Bank of Winchester, Winchester, Illinois, is closed by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with The First National Bank of Beardstown, Beardstown, Illinois, to assume all of the deposits of The First State Bank of Winchester.
Press Release

Rock River Bank, Oregon, Illinois, is closed by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with The Harvard State Bank, Harvard, Illinois, to assume all of the deposits of Rock River Bank.
Press Release

The FHFA authorizes Fannie Mae and Freddie Mac to expand the Home Affordable Refinance Program to homeowners who are current on their mortgage payments from the present loan-to-value ratio ceiling of 105 to 125%. Qualified borrowers whose mortgages are currently owned or guaranteed by Fannie Mae and Freddie Mac will thus be allowed to refinance those loans according to the terms of the Home Affordable Refinance Program established earlier this year.
Press Release

June 29, 2009 

The Federal Reserve offers $150 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

The Federal Reserve, the FDIC, and the OCC issue the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994.
Press Release

The OCC and the OTS release the Mortgage Metrics Report for the first quarter of the year. Delinquencies and foreclosures on first-lien mortgages continued to increase, but loan modifications also increased and the trend continued toward more sustainable modifications with lower monthly payments.
Press Release

Treasury Secretary Tim Geithner announces $90 million in financial assistance awards for 59 Community Development Financial Institutions in 26 states and Puerto Rico that help communities hard hit by the economic crisis.

June 26, 2009

Community Bank of West Georgia, Villa Rica, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC will mail checks to insured depositors for their insured funds on Monday, June 29, 2009.
Press Release

Neighborhood Community Bank, Newnan, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with CharterBank, West Point, Georgia, to assume all of the deposits of Neighborhood Community Bank.
Press Release

Horizon Bank, Pine City, Minnesota, is closed by the Minnesota Department of Commerce, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume all of the deposits of Horizon Bank.
Press Release

MetroPacific Bank, Irvine, California is closed by the California Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Sunwest Bank, Tustin, California, to assume all of the deposits of MetroPacific Bank, excluding those from brokers.
Press Release

Mirae Bank, Los Angeles, is closed by the California Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Wilshire State Bank, Los Angeles, California, to assume all of the deposits of Mirae Bank.
Press Release

The federal bank and thrift regulatory agencies invite public comment on an interim final rule that provides that mortgage loans modified under the Treasury’s Making Home Affordable Program will retain the risk weight applicable before modification.
Press Release

June 25, 2009

The Federal Reserve announces the extension of a number of its liquidity programs. Specifically, the Federal Reserve approved extension through February 1, 2010, of the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, the Commercial Paper Funding Facility, the Primary Dealer Credit Facility, and the Term Securities Lending Facility.
Press Release

June 24, 2009

The SEC proposes rule amendments designed to strengthen the regulatory framework for money market funds to increase their resilience to economic stresses and reduce the risks of runs on the funds. Amongst other things, the proposed amendments would require money market funds to maintain a portion of their portfolios in highly liquid investments, reduce their exposure to long-term debt, and limit their investments to only the highest quality portfolio securities.
Press Release

The federal bank and thrift regulatory agencies propose revisions to regulations implementing the Community Reinvestment Act to require the agencies to consider low-cost education loans provided to low-income borrowers when assessing a financial institution's record of meeting community credit needs. The proposal also would incorporate statutory language that allows the agencies, when assessing an institution's record, to consider, as a factor, capital investments, loan participations, and other ventures by nonminority- and nonwomen-owned financial institutions in cooperation with minority- and women-owned institutions and low-income credit unions.
Press Release

The OCC releases a list of Community Reinvestment Act performance evaluations made public during the period of May 15, 2009 through June 14, 2009. The list contains only national banks and insured federal branches of foreign banks that have received ratings. Of the 22 evaluations made public this month, 2 were outstanding, 20 were satisfactory, and none were needs to improve. None were substantial noncompliance.
Press Release

June 23, 2009

The FHFA releases its Foreclosure Prevention Report for the first quarter of 2009. Fannie Mae and Freddie Mac modified nearly 37,000 loans, an increase of 57% over the fourth quarter of 2008 and more than double the number of modifications in the first quarter of last year.
Press Release

June 22, 2009

The Treasury announces $268 million in Recovery Act funding to spur the development of affordable housing units in Indiana, Missouri, Tennessee, and Washington, D.C.

The FHFA releases its House Price Index, which shows that U.S. home prices fell 0.1% on a seasonally-adjusted basis from March to April. The previously reported 1.1% decline in March was revised to a 1.4% decline. For the 12 months ending in April, U.S. prices fell 6.8%. The U.S. index is 11.2% below its April 2007 peak.
Press Release

June 19, 2009

Southern Community Bank, Fayetteville, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with United Community Bank, Blairsville, Georgia, to assume all of the deposits of Southern Community Bank.
Press Release

Cooperative Bank, Wilmington, North Carolina, is closed by the North Carolina Office of Commissioner of Banks, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First Bank, Troy, North Carolina, to assume all of the deposits of Cooperative Bank, except those from brokers.
Press Release

First National Bank of Anthony, Anthony, Kansas, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Bank of Kansas, South Hutchinson, Kansas, to assume all of the deposits of First National Bank of Anthony.
Press Release

The Senate confirms Herbert M. Allison, Jr. as the Treasury's Assistant Secretary for Financial Stability, responsible for developing and coordinating the Treasury's policies on legislative and regulatory issues affecting financial stability, including overseeing TARP.

June 16, 2009

The FDIC releases the Summer 2009 issue of Supervisory Insights, which documents some of the major financial events of 2008 and highlights areas of current and future supervisory emphasis, including key regulatory developments and the ongoing technological evolution of bank products.
Press Release

June 15, 2009

The Federal Reserve offers $150 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

June 12, 2009

The Treasury announces $25 billion in bonds authority available under the Recovery Zone Bonds program, as created by the American Recovery and Reinvestment Act. Recovery Zone Bonds are targeted to areas identified as being particularly affected by job loss with the purpose of helping local governments obtain financing for economic development projects, such as public infrastructure development.

June 11, 2009

The Treasury announces that the tax deduction for the purchase of new motor vehicles under the American Recovery and Reinvestment Act of 2009 is available in states that do not have a state sales tax. Taxpayers who purchase a new motor vehicle in states that do not impose state sales or excise taxes are entitled to deduct other fees or taxes imposed by the state or local government that are based on the vehicle's sales price or as a per unit fee.

June 10, 2009

The Treasury releases an Interim Final Rule related to standards for compensation and corporate governance under TARP. Provisions of the Interim Final Rule include i) the limitation of executive compensation for companies receiving TARP assistance, ii) the appointment of a Special Master to ensure compensation plans are consistent with the public interest, iii) the implementation and expansion of key provisions of the American Recovery and Reinvestment Act of 2009 to be consistent with the Treasury’s February 4th proposals and iv) the setting of additional compensation and governance standards to improve accountability and disclosure for TARP recipients.

The Federal Reserve issues the first of a series of monthly reports providing information on its credit and liquidity programs, entitled Federal Reserve Credit and Liquidity Programs and the Balance Sheet. Among other things, information available in the report includes the number of borrowers and borrowing amounts by type of institution, collateral by type and credit rating, and data on the concentration of borrowing.
Press Release

June 9, 2009

The Treasury announces that 10 of the largest U.S. financial institutions participating in the Capital Purchase Program have met the requirements for repayment established by the primary federal banking supervisors. Following consultation with the primary banking supervisor of each institution, the Treasury has notified the institutions that they are now eligible to complete the repayment process. If these firms choose to do so, the Treasury will receive $68 billion in repayment proceeds.

June 8, 2009

The federal bank and thrift regulatory agencies announce the availability of the 2009 list of distressed or underserved nonmetropolitan middle-income geographies in which revitalization or stabilization activities will receive Community Reinvestment Act consideration as "community development."
Press Release

June 5, 2009

Bank of Lincolnwood, Lincolnwood, Illinois, is closed by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Republic Bank of Chicago, Oak Brook, Illinois, to assume all of the deposits of Bank of Lincolnwood.
Press Release

June 4, 2009

The Treasury announces approximately $135 million in American Recovery and Reinvestment Act funding to spur the development of affordable housing units in Iowa, Maine, New Hampshire, Rhode Island, and Washington. The funds announced today are the second round in a series of awards based on a rolling application process.
Press Release 

June 3, 2009

The SEC announces the formation of an Investor Advisory Committee to give investors a greater voice in the SEC's work. The Investor Advisory Committee's charter provides for a broad scope of interest, including: i) advising the SEC on matters of concern to investors in the securities markets; ii) providing the SEC with investors' perspectives on current, non-enforcement, regulatory issues; and iii) serving as a source of information and recommendations to the SEC regarding its regulatory programs from the point of view of investors.
Press Release

June 1, 2009

The Federal Reserve offers $150 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

The Federal Reserve outlines criteria it will use to evaluate applications to redeem Treasury capital from the 19 bank holding companies that participated in the Supervisory Capital Assessment Program. Among other criteria, any bank holding company seeking to redeem Treasury capital must demonstrate an ability to access the long-term debt markets without reliance on the FDIC's TLGP, and must successfully demonstrate access to public equity markets.
Press Release

The Treasury releases the data from its first Capital Purchase Program Monthly Lending Report. The report shows that the total average outstanding loans for all Capital Purchase Program participants were $5,279 billion in February 2009 and $5,237 billion in March 2009.

May 29, 2009

The FDIC approves establishing the FDIC Advisory Committee on Community Banking to provide the FDIC with advice and guidance on a broad range of important policy issues impacting small community banks throughout the country, as well as the local communities they serve, with a focus on rural areas.
Press Release

The FDIC issues a final rule changing the way the FDIC administers its statutory restrictions on the deposit interest rates paid by banks that are less than well capitalized.
Press Release

May 28, 2009

The FHFA reports that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased 18 basis points to 4.87 percent in April. The average interest rate on 15- year, fixed-rate loans of $417,000 or less decreased 3 basis points to 4.75 percent in April.
Press Release

May 27, 2009

Commercial banks and savings institutions insured by the FDIC report net income of $7.6 billion in the first quarter of 2009, a decline of $11.7 billion (60.8 percent) from the $19.3 billion that the industry earned in the first quarter of 2008. Higher loan-loss provisions, increased goodwill write-downs, and reduced income from securitization activities all contributed to the year-over-year earnings decline.
Press Release

Treasury Secretary Tim Geithner announces $1.5 billion in New Markets Tax Credit awards for 32 organizations throughout the country. Through American Recovery and Reinvestment Act funds, the New Markets Tax Credit program is intended to inject private-sector capital investment into communities around the country to create jobs, stimulate economic growth, and jumpstart the lending necessary for financial stability.

U.S. home prices fell in the first quarter of 2009 according to the FHFA’s seasonally-adjusted purchase-only house price index. The previously announced, but revised January and February indexes showed increases in house prices, which were offset by a March decrease.

May 22, 2009

The FDIC votes to levy a special assessment on insured institutions as part of the agency's efforts to rebuild the Deposit Insurance Fund and help maintain public confidence in the banking system. The final rule establishes a special assessment of five basis points on each FDIC-insured depository institution's assets, minus its Tier 1 capital, as of June 30, 2009. The special assessment will be collected September 30, 2009.
Press Release

Strategic Capital Bank, Champaign, Illinois, is closed by the Illinois Department of Financial and Professional Regulation, Division of Banking, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Midland States Bank, Effingham, Illinois, to assume all of the deposits of Strategic Capital Bank.
Press Release

Citizens National Bank, Macomb, Illinois, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Morton Community Bank, Morton, Illinois, to assume all of the deposits of Citizens National Bank, excluding those from brokers.
Press Release

The Treasury announces more than $330 million in American Recovery and Reinvestment Act funding to spur the development of affordable housing units in Kansas, Michigan, Ohio, Wisconsin, and Puerto Rico. HUD also announces $83 million for housing development in Ohio.
Press Release

The U.S. Senate confirms Michael S. Barr as the Treasury's Assistant Secretary for Financial Institutions.
Press Release

The Federal Reserve announces the adoption of a final rule allowing bank holding companies to include in their Tier 1 capital without restriction senior perpetual preferred stock issued to the Treasury under TARP. The Federal Reserve further announces the adoption of an interim final rule that will allow bank holding companies that are S-Corps or that are organized in mutual form to include in Tier 1 capital all subordinated debt issued to Treasury under TARP, provided that the subordinated debt will count toward the limit on the amount of other restricted core capital elements includable in Tier 1 capital.
Press Release

May 21, 2009

The Treasury announces it has made an investment of $7.5 billion in GMAC LLC to support GMAC’s ability to originate new loans to Chrysler dealers and consumers and help address GMAC’s capital needs as identified through the Supervisory Capital Assessment Program. The investment will be made in the form of 9 percent Mandatorily Convertible Preferred Interests.
Press Release

The Treasury announces that U.S. Ambassador to Luxembourg, Ann Wagner, and Luxembourger Finance Minister, Luc Frieden, signed a protocol updating the current income tax treaty between the United States and Luxembourg to allow for more robust tax information exchange between the two countries.

May 20, 2009

The Federal Reserve announces the approval of final amendments to Regulation D (Reserve Requirements of Depository Institutions) to liberalize the types of transfers consumers can make from savings deposits and to make it easier for community banks that use correspondent banks to receive interest on excess balances held at Federal Reserve Banks. The amendments would also ensure that correspondents that are not eligible to receive interest on their own balances at Reserve Banks pass back to their respondents any interest earned on required reserve balances held on behalf of those respondents.
Press Release

The SEC votes to propose a comprehensive series of rule amendments to facilitate the rights of shareholders to nominate directors on corporate boards.
Press Release

May 19, 2009

The Federal Reserve announces that, starting in July, certain high-quality commercial mortgage-backed securities issued before January 1, 2009 (legacy CMBS) will become eligible collateral under TALF. The extension of eligible TALF collateral to include legacy CMBS is intended to promote price discovery and liquidity for legacy CMBS.
Press Release

The OCC releases a list of Community Reinvestment Act performance evaluations that became public during the period of April 15, 2009 through May 14, 2009. The list contains only national banks and insured federal branches of foreign banks that have received ratings. Of 39 evaluations, 10 were outstanding, 28 were satisfactory, and one was needs to improve. None were substantial noncompliance.
Press Release

The Senate confirms Neal S. Wolin as Deputy Secretary of the Treasury.
Press Release

May 18, 2009

The Federal Reserve offers $150 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

FHFA releases the first Report to Congress, which details the findings of the 2008 annual examinations of Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Office of Finance. The report includes conclusions from examinations of the Federal Home Loan Banks, information about the compensation of Federal Home Loan Banks directors, and housing mission and goals information for all government-sponsored housing enterprises.

May 15, 2009

The Treasury releases results from its monthly bank lending survey for March. Overall, balance sheets continued to contract. Outstanding loan balances at these banks slipped 1 percent in March. The survey also collects information on originations, which rose by 27 percent.

May 14, 2009

The SEC proposes rule amendments to increase protections for investors who entrust their money to investment advisers. The additional safeguards proposed include a yearly "surprise exam" of investment advisers performed by an independent public accountant to verify client assets. In addition, when an adviser or an affiliate directly holds client assets, a custody control review would have to be conducted by a PCAOB-registered and inspected accountant.
Press Release

Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan provide an update on the Making Home Affordable program’s impact on stemming the housing crisis and keeping families in their homes. The Secretaries also announce new details on the program with respect to foreclosure alternatives and home price decline protection incentives.
Press Release

May 13, 2009

Treasury announces Administration proposal to establish a comprehensive regulatory framework for over-the-counter derivatives. Objectives of such reform include (i) preventing activities within the over-the-counter derivatives markets from posing risk to the financial system, (ii) promoting efficiency and transparency within the markets, (iii) preventing market manipulation, fraud, and other market abuses, and (iv) ensuring that over-the-counter derivatives are not marketed inappropriately to unsophisticated parties.

May 12, 2009

The SEC and Department of Labor announce a joint one-day hearing, to be held on June 18, to explore issues relating to target date or lifecycle funds and other similar investment options. The hearing will focus generally on issues facing investors in these types of products, and will explore topics such as portfolio composition, risk, and disclosure.
Press Release

FHFA releases the latest Foreclosure Prevention Report detailing actions taken to prevent unnecessary foreclosures.

May 11, 2009

The Treasury releases the General Explanations of the Administration's Fiscal Year 2010 Revenue Proposals (Greenbook).

May 8, 2009

Westsound Bank, Bremerton, Washington, is closed by the Washington Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Kitsap Bank, Port Orchard, Washington, to assume all of the deposits, except those from brokers, of Westsound Bank.
Press Release

The Federal Reserve approves final rules that revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending). The revisions implement the Mortgage Disclosure Improvement Act, which seeks to ensure that consumers receive cost disclosures earlier in the mortgage process.
Press Release

The FDIC announces it will open a temporary satellite office in Jacksonville, Florida, to manage receiverships and to liquidate assets from failed financial institutions primarily located in the eastern states.
Press Release

The CFTC approves for publication in the Federal Register a proposal to amend requirements for minimum adjusted net capital under CFTC Regulation 1.17 for futures commission merchants and those introducing brokers that do not operate under a guarantee agreement with a future commission merchant. The CFTC seeks public comment on all matters addressed in the proposal, which must be received by July 6, 2009.
Press Release 

May 7, 2009

The Federal Reserve, the OCC, and the FDIC release the results of the Supervisory Capital Assessment Program, a forward-looking assessment of the financial conditions of the nation's 19 largest bank holding companies. The exercise was conducted so that the agencies could determine the capital buffers sufficient for the bank holdings companies to withstand losses and sustain lending, even if the economic downturn is more severe than is currently anticipated.
Press Release

Treasury Secretary Tim Geithner highlights key components of the President's FY 2010 Budget. For example, the Treasury intends to provide more than $870 million in savings over a ten-year period by terminating the Advanced Earned Income Tax Credit.

The Senate confirms Alan B. Krueger to serve as the Treasury’s Assistant Secretary for Economic Policy, responsible for the review and analysis of both domestic and international economic issues and developments in the financial markets.
Press Release

May 5, 2009

The FDIC announces the creation of a new unit within the Office of the Ombudsman specifically designed to assist customers with loans at failed banks. The FDIC also produces "A Borrower's Guide to an FDIC Insured Bank Failure" to help inform customers that had loans with failed institutions about what they can expect to occur in the receivership process, including the disposition of loans, workout steps taken on delinquent loans and an explanation of borrower rights.
Press Release

May 4, 2009

The Treasury and the Department of Housing and Urban Development (HUD) announce programs that will provide approximately $5 billion in American Recovery and Reinvestment Act funds to finance the acquisition and construction of affordable housing. The Treasury will provide state housing agencies with resources from which they will in turn provide cash assistance to developers of qualified affordable housing developments to fill the Low Income Housing Tax Credit gap. HUD will award $2.25 billion in grants to state housing credit agencies through the Tax Credit Assistance Program to complete construction of qualified housing developments.

The Federal Reserve offers $150 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

FDIC Chairman Sheila C. Bair announces the appointment of Michael Bradfield as General Counsel to the FDIC. The appointment was unanimously approved by the FDIC Board of Directors and is effective today.
Press Release

The Treasury announces two components of the Administration's plan to reform international tax laws: (i) to promote job creation in the U.S. by reforming deferral rules, closing foreign tax credit loopholes and making the tax credit for investing in research and experimentation in the U.S. permanent and (ii) to reduce the amount of taxes lost to tax havens. Combined with further international tax reforms to be unveiled in the full budget, the Administration estimates the initiatives would raise $210 billion over the next 10 years.

May 1, 2009

Citizens Community Bank, Ridgewood, New Jersey, is closed by the New Jersey Department of Banking and Insurance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with North Jersey Community Bank, Englewood Cliffs, New Jersey, to assume all of the deposits of Citizens Community Bank.
Press Release

America West Bank, Layton, Utah, is closed by the Utah Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Cache Valley Bank, Logan, Utah, to assume all of the deposits of America West.
Press Release

The Federal Reserve announces that, starting in June, commercial mortgage-backed securities and securities backed by insurance premium finance loans will be eligible collateral under the TALF. The Federal Reserve also authorized TALF loans with maturities of five years, which will be available for the June funding to finance purchases of commercial mortgage-backed securities, asset-backed securities backed by student loans, and asset-backed securities backed by loans guaranteed by the Small Business Administration.
Press Release

Silverton Bank, National Association, Atlanta, Georgia is closed by the OCC, which appoints the FDIC as receiver. The FDIC creates a bridge bank, Silverton Bridge Bank, National Association, to take over the bank’s operations. Silverton Bank did not take deposits directly from the general public nor did it make loans to consumers. It was a commercial bank that provided correspondent banking services to its client banks.
Press Release

April 30, 2009

The Treasury, the Federal Reserve Bank of New York, and the Federal Reserve release the final results of their joint survey of foreign portfolio holdings of U.S. securities at end-June 2008. The survey measured foreign holdings of U.S. securities as of June 30, 2008, to be $10,322 billion, with $2,969 billion held in U.S. equities, $6,494 billion in U.S. long-term debt securities (of which $1,532 billion are holdings of asset-backed securities (ABS) and $4,962 billion are holdings of non-ABS securities), and $858 billion held in U.S. short-term debt securities.

The SEC announces a new effort to identify and assess risks in the financial markets by attracting seasoned industry professionals to the agency's Office of Risk Assessment. The new Industry and Markets Fellows Program will help the agency expand its ability to oversee complex industry practices and products in today's markets. The individual fellows who come to the agency through the program will also help familiarize SEC staff with current industry practices and products.
Press Release

After a month of close engagement with the President's Auto Task Force, Chrysler, Fiat and their key stakeholders have executed an agreement that positions Chrysler for a viable future. To execute this agreement, Chrysler will use Section 363 of the bankruptcy code to clear away the remaining impediments to its re-launch.
Press Release

April 29, 2009

The Federal Reserve issues a statement that although the economic outlook has improved modestly since March, partly reflecting some easing of financial market conditions, economic activity is likely to remain weak for a time. The Federal Reserve will thus maintain the target range for the federal funds rate at 0 to 1/4 percent and anticipates that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.
Press Release

The Treasury announces the receipt of more than 100 unique applications from potential fund managers interested in participating in the Legacy Securities portion of the Public Private Investment Program. A variety of institutions applied, including traditional fixed income, real estate, and alternative asset managers. The Treasury expects to inform applicants of their preliminary qualification around May 15, 2009. Once a fund receives preliminary qualification, it can begin raising the expected minimum of $500 million in private capital that will serve as the investment that, pending further approval, will be matched with taxpayer funds.

April 28, 2009

The FHFA sends a proposed rule establishing 2009 housing goals for Fannie Mae and Freddie Mac to the Federal Register for publication. Loan modifications undertaken by Fannie Mae and Freddie Mac consistent with the Administration’s loan modification initiative would receive credit toward achievement of housing goals. In addition, for the first time, the FHFA proposes that loan modifications undertaken by either Fannie Mae or Freddie Mac consistent with the Administration’s loan modification initiatives receive housing goals credit.
Press Release 

The Obama Administration announces details of new efforts to help bring relief to responsible homeowners under the Making Home Affordable Program, including an effort to achieve greater affordability for homeowners by lowering payments on their second mortgages as well as a set of measures to help underwater borrowers stay in their homes. The Second Lien Program announced today will work in tandem with first lien modifications offered under the Home Affordable Modification Program to deliver a comprehensive affordability solution for struggling borrowers.
Press Release

The FHFA reports that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less increased 2 basis points to 5.05 percent in March. The average interest rate on 15-year, fixed-rate loans of $417,000 or less decreased 14 basis points to 4.78 percent in March.
Press Release

April 27, 2008

The CFTC announces it has adopted a final definition of "public director" for the acceptable practices to Section 5(d)(15) (Core Principle 15) of the Commodity Exchange Act. The final definition completes the CFTC’s work in developing acceptable practices for Core Principle 15. The acceptable practices consist of three operating provisions—boards of directors composed of at least 35% public directors, board-level regulatory oversight committees consisting exclusively of public directors, and disciplinary panels including at least one public person—and one provision which provides necessary definitions, including the definition of public director.
Press Release

April 24, 2009

The Financial Stability Oversight Board issues its second quarterly report to Congress on the EESA, covering the period January 1 to March 31, 2009. In the report, the Oversight Board indicates its belief that the actions taken by Treasury under the EESA have provided critical support to the financial system during this period of market turbulence and weakening economic conditions. The Oversight Board believes the Treasury should continue to use its TARP authority to stabilize financial markets, help strengthen financial institutions, improve the functioning of the credit markets, and address systemic risks given the consequences that potential instability of the nation’s financial institutions and markets can have for the broader economy.
Press Release

The Federal Reserve publishes a white paper describing the process and methodologies behind its Supervisory Capital Assessment Program, a stress test used to determine which of the bank holding companies have enough capital to withstand a further deterioration of the economy.
Press Release
Article in Business Week

American Southern Bank, Kennesaw, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Bank of North Georgia, Alpharetta, Georgia, to assume all of the deposits, excluding those from brokers, of American Southern Bank.
Press Release

Michigan Heritage Bank, Farmington Hills, Michigan, is closed by the Michigan Office of Financial and Insurance Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Level One Bank, Farmington Hills, Michigan, to assume all of the deposits, excluding those from brokers, of Michigan Heritage.
Press Release

First Bank of Beverly Hills, Calabasas, California is closed by the California Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC approves the payout of the insured deposits of the bank.
Press Release

First Bank of Idaho, FSB, Ketchum, Idaho, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with U.S. Bank, Minneapolis, Minnesota, to assume all of the deposits, excluding those from brokers, of First Bank of Idaho.
Press Release

April 23, 2009

The Federal Reserve publishes the annual financial statements for the combined Federal Reserve Banks, the 12 individual Federal Reserve Banks, the LLCs that were created in 2008 to respond to strains in financial markets, and the Board of Governors for the years ended December 31, 2008 and 2007. Total Reserve Bank assets were $2.25 trillion on December 31, 2008, which is an increase of $1.33 trillion from the prior year.
Press Release

The Federal Reserve publishes the annual financial statements for the combined Federal Reserve Banks, the 12 individual Federal Reserve Banks, the LLCs that were created in 2008 to respond to strains in financial markets, and the Board of Governors for the years ended December 31, 2008 and 2007. Total Reserve Bank assets were $2.25 trillion on December 31, 2008, which is an increase of $1.33 trillion from the prior year.
Press Release

April 22, 2009

The Treasury announces that it has selected three firms, AllianceBernstein LP, FSI Group, LLC and Piedmont Investment Advisors, LLC, to manage its portfolio of assets issued by banks and other institutions participating in the Capital Purchase Program and other similar programs under the EESA. These firms are to provide asset management services to the Treasury, including valuing assets issued to the Treasury by public and private financial institutions participating in the Capital Purchase Program, analyzing the ongoing financial condition, capital structure, and risks of these financial institutions, and advising on and executing transactions in accordance with the Treasury’s investment policy.
Press Release

The FHFA releases its monthly House Price Index, which indicates that U.S. home prices rose 0.7 percent on a seasonally-adjusted basis. January’s previously reported 1.7 percent increase was revised to a 1.0 percent increase. For the 12 months ending in February, U.S. prices fell 6.5 percent. The U.S. index is 9.5 percent below its April 2007 peak.

April 21, 2009

The Federal Reserve, the OTS, and the NCUA propose clarifications to aspects of their December 2008 final rules under the Federal Trade Commission Act prohibiting certain unfair credit card practices. The Federal Reserve also proposes clarifications to its December 2008 final rule under the Truth in Lending Act amending Regulation Z to improve the disclosures consumers receive in connection with credit card accounts and other revolving credit plans.
Press Release

The Federal Reserve announces two new interest rates applicable to loans extended under the TALF. The rates apply to certain loans secured by asset-backed securities (ABS) with weighted average lives to maturity of less than two years. The new rates will be based on one- and two-year London interbank offered swap rates. This should result in a better match to the duration of the underlying ABS collateral.
Press Release

The FHFA submits to Congress its latest report as a Federal Property Manager detailing actions taken to prevent unnecessary foreclosures. The report features several new metrics including reasons for default, loans in bankruptcy, and types of modifications. According to the report, completed foreclosure sales and third-party sales declined 77 percent in December and 79 percent in January. This was due to Fannie Mae and Freddie Mac's suspension of foreclosure sales and evictions on owner-occupied properties. The report also indicated that loans that were 60+ and 90+ days delinquent increased.
Press Release 

April 20, 2009

The Federal Reserve offers $150 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

April 17, 2009

American Sterling Bank, Sugar Creek, Missouri, is closed by the OTS, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Metcalf Bank, Lee's Summit, Missouri, to assume all of the deposits of American Sterling Bank.
Press Release

Great Basin Bank of Nevada, Elko, Nevada, is closed by the Nevada Financial Institutions Division, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Nevada State Bank, Las Vegas, Nevada, to assume all of the deposits of Great Basin Bank of Nevada.
Press Release

The OCC releases a bulletin alerting bankers and examiners to recent accounting guidance released by the Financial Accounting Standards Board on other-than-temporary impairment (OTTI). The bulletin provides a background of the accounting changes, discusses expectations for bank management when determining whether a security has an OTTI, and highlights the effect of the accounting changes on regulatory capital requirements.
Press Release

April 15, 2009

The Treasury sends its semi-annual Report to Congress on International Economic and Exchange Rate Policies. The report focuses on the economic, financial and exchange rate impacts of the financial crisis on the U.S. and the global economy. The report also examines the policy actions that twenty-one economies have taken to restore growth and achieve financial stability.

The FHFA releases its Foreclosure Prevention Report for the fourth quarter of 2008. The report reveals that Fannie Mae and Freddie Mac modified nearly 24,000 loans during the fourth quarter, an increase of 76 percent over the third quarter. The modifications, along with the suspension of foreclosures that began November 26, reduced the number of foreclosures by nearly 27 percent during the quarter.
Press Release

The SEC announces that it has reopened the public comment period on a proposal for a model privacy form that financial institutions could use to provide disclosures required by the Gramm-Leach-Bliley Act. The Commission is reopening the comment period in order to solicit public comment on the results of recent quantitative consumer testing conducted to evaluate the form.
Press Release

The Treasury releases the results from its monthly bank lending survey for February. While the results show a bright spot in housing lending, it is apparent that the economic downturn and financial crisis continue to negatively impact credit markets and the demand for loans by consumers and businesses. Banks extended approximately the same level of loan originations in February as in January.
Press Release

April 14, 2009

The Treasury releases a term sheet for mutual banks applying to the Capital Purchase Program. This term sheet provides for issuance of debt by mutual banks that do not have holding companies.

April 10, 2009

Cape Fear Bank, Wilmington, North Carolina, is closed by the North Carolina Office of Commissioner of Banks, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First Federal Savings and Loan Association of Charleston (First Federal), Charleston, South Carolina, to assume all of the deposits of Cape Fear Bank.
Press Release

New Frontier Bank, Greeley, Colorado, is closed by the State Bank Commissioner, by Order of the Banking Board of the Colorado Division of Banking, which appoints the FDIC as receiver. The FDIC creates the Deposit Insurance National Bank of Greeley, which will remain open for approximately 30 days to allow depositors time to open accounts at other insured institutions.
Press Release

April 8, 2009

The SEC votes to seek public comment on whether short sale price restrictions or circuit breaker restrictions should be imposed and whether such measures would help promote market stability and restore investor confidence. In June 2007, the SEC voted to eliminate price restrictions but has decided to re-evaluate its decision due to current market conditions.
Press Release

The Treasury announces that Chrysler and General Motors will launch Auto Supplier Support Programs. The programs are open to any receivable created with respect to goods shipped after March 19, 2009 made on qualifying commercial terms.

The OCC announces its approval of a final rule that extends the risk-based capital treatment of a previously issued interim final rule for Asset-Backed Commercial Paper purchased by national banks pursuant to the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility established by the Federal Reserve.

April 7, 2009

The Treasury releases three term sheets for qualifying financial institutions applying to the Capital Purchase Program that are bank or savings and loan holding companies in mutual organization or their stock holding company subsidiaries. The first term sheet provides for issuance of preferred stock at publicly-traded subsidiary holding companies. The second term sheet provides for issuance of preferred stock at privately held subsidiary holding companies. The third term sheet provides for issuance of debt by top-tier mutual holding companies that do not have subsidiary holding companies.

April 6, 2009

The Federal Reserve authorizes new temporary reciprocal currency arrangements with the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank. If drawn upon, these arrangements would support operations by the Federal Reserve to provide liquidity in sterling in amounts of up to £30 billion, in euro in amounts of up to €80 billion, in yen in amounts of up to ¥10 trillion, and in Swiss francs in amounts of up to CHF 40 billion.
Press Release

The Federal Reserve offers $150 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

The Treasury releases additional guidance for potential investors in the securities portion of the Public Private Investment Program. The new guidance extends the deadline for application to the program and clarifies that failure to meet any one participation criterion will not necessarily disqualify a proposal. The guidance also highlights the Treasury's interest in program participation by small, minority and women-owned businesses; the potential for further expansion of participants and asset classes; and the interaction of the Federal Reserve's TALF with this program.

April 3, 2009

The OCC and the OTS release their quarterly report on first lien mortgage performance for the fourth quarter of 2008. The report shows that credit quality continued to decline in the fourth quarter of 2008. At the end of the year, just under 90 percent of mortgages were performing, compared with 93 percent at the end of September 2008.
Press Release

The Treasury announces the new Build America Bond program, which will make available funding for state and local governments at lower borrowing costs so they can pursue necessary capital projects. The program provides a federal subsidy for a larger portion of the borrowing costs of state and local governments than traditional tax-exempt bonds. The Treasury also announces guidance on allocations of national bond volume cap authorizations for two tax credit bond programs for schools, known as Qualified School Construction Bonds and Qualified Zone Academy Bonds. These tax credit bond programs allow state and local governments to finance public school construction projects.

March 31, 2009

The Federal Reserve requests public comment on proposed changes to the methodology for calculating the imputed costs, collectively known as the private sector adjustment factor, that are considered when setting fees and measuring cost recovery for certain payment services provided to depository institutions (DIs). The Board is considering a new methodology because the recent implementation of the payment of interest on DI required reserve balances and excess balances held at Reserve Banks and the subsequent reduction in clearing balances held at Reserve Banks have changed the priced services balance sheet to more closely reflect publicly traded firms more generally rather than correspondent banks.
Press Release

March 27, 2009

Omni National Bank, Atlanta, Georgia, is closed by the OCC, which then appoints the FDIC as receiver. The FDIC enters into an agreement with SunTrust Bank, Atlanta, Georgia, to act as paying agent for the insured deposits of Omni National Bank. As the FDIC's paying agent, SunTrust will operate the six former branches of Omni National, on behalf of the receiver, until April 27, 2009.
Press Release

The OCC releases its Quarterly Report on Bank Trading and Derivatives Activities. According to the report, U.S. commercial banks reported a $9.2 billion trading loss for the fourth quarter of 2008 due, in part, to large write downs on legacy credit positions. For 2008, banks reported an annual trading loss of $836 million, compared to trading revenues of $5.5 billion in 2007.

March 26, 2009

The FDIC announces the opening of the public comment period for the Legacy Loans Program (LLP). The FDIC and the Treasury recently announced the LLP, which will remove troubled loans and other assets from FDIC-insured institutions and attract private capital to purchase the loans.
Press Release

In an effort to fix critical gaps and weaknesses in the financial regulatory system, the Treasury outlines its framework for regulatory reform. In particular, it details its plan to address systemic risk, which includes: 1) the creation of a single independent regulator to oversee systematically important firms; 2) the adoption of higher standards on capital and risk management for systemically important firms; 3) the registration of certain hedge fund advisers; 4) new regulation of the OTC Derivatives market; and 5) new requirements for money market funds that address the risk of rapid withdraws.

The FHFA reports that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased 6 basis points to 5.03 percent in February. The average interest rate on 15-year, fixed-rate loans of $417,000 or less decreased 19 basis points to 4.92 percent in February.
Press Release

March 25, 2009

The Treasury details its proposal for new legislation allowing the government to put financial firms into conservatorship or receivership and then to administer their effective, orderly reorganization or wind-down. The legislation would cover systemically significant financial institutions that fall outside of the existing resolution regime under the FDIC. 

March 24, 2009

CFTC publishes a concept release reviewing whether to eliminate bona fide hedge exemptions for swap dealers and create new limited risk management exemptions.
Press Release

The FHFA releases its monthly House Price Index, which indicates that U.S. home prices rose 1.7 percent on a seasonally-adjusted basis from December to January. December’s previously reported 0.1 percent increase was revised to a 0.2 percent decline. For the 12 months ending in January, U.S. prices fell 6.3 percent. The U.S. index is 9.6 percent below its April 2007 peak.

March 23, 2009

The Federal Reserve and the Treasury issue a joint statement discussing their common views on the appropriate roles of the Federal Reserve and the Treasury during the current financial crisis and in the future. 

The Federal Reserve offers $150 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

To address the challenge of so-called toxic assets, the Treasury – in conjunction with the FDIC and the Federal Reserve – announces the Public-Private Investment Program. Using $75 to $100 billion in TARP capital and capital from private investors, the program will generate up to $1 trillion to buy the assets and remove them from the balance sheets of financial firms.

Final rules and rule amendments that increase the CFTC’s oversight of exempt commercial markets (ECMs) are published in the Federal Register. The rules implement provisions of the CFTC Reauthorization Act of 2008, which created a new regulatory category—ECMs with significant price discovery contracts (SPDCs)—and subjected these electronic trading facilities to additional regulatory and reporting requirements. The rules are designed to increase transparency and accountability in these markets and so better protect market participants and the public at large.

March 20, 2009

The FirstCity Bank, Stockbridge, Georgia is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC approves the payout of the insured deposits of the bank.
Press Release

Colorado National Bank, Colorado Springs, Colorado, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Herring Bank, Amarillo, Texas, to assume all of the deposits of Colorado National.
Press Release

Teambank, National Association, Paola, Kansas, is closed by the OCC, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Great Southern Bank, Springfield, Missouri, to assume all of the deposits of Teambank.
Press Release

The FDIC announces that the commercial banks and savings institutions it insures experienced an even larger net loss in the fourth quarter of 2008 than it previously reported in an announcement on February 26. Information received shortly after the announcement reflected substantially higher charges for goodwill impairment in the fourth quarter, which affected the industry's aggregate net income and total equity capital.
Press Release

March 19, 2009

The FDIC completes the sale of IndyMac Federal Bank FSB, Pasadena, California, to OneWest Bank, FSB, a newly formed Pasadena, California-based federal savings bank organized by IMB HoldCo LLC.  OneWest will assume all deposits of IndyMac Federal.
Press Release

The Federal Reserve announces that the set of eligible collateral for loans extended by the TALF is being expanded to include four additional categories of asset-backed securities (ABS):  1) ABS backed by mortgage servicing advances; 2) ABS backed by loans or leases relating to business equipment; 3) ABS backed by leases of vehicle fleets; and 4) ABS backed by floorplan loans.
Press Release

To help stabilize the auto supply base and restore credit flows in this sector of the economy, the Treasury announces the new Auto Supplier Support Program. The program will provide suppliers with access to government-backed protection that money owed to them for the products they ship will be paid no matter what happens to the recipient car company. Suppliers will also be able to sell their receivables into the program at a modest discount.

March 18, 2009

In light of the continuing contraction of the economy, the Federal Reserve decides to maintain the target range for the federal funds rate at 0 to 1/4 percent. It also decides to increase the size of the Federal Reserve’s balance sheet further by purchasing up to an additional $750 billion of agency mortgage-backed securities and to increase its purchases of agency debt this year by up to $100 billion. To help improve conditions in private credit markets, it decides to purchase up to $300 billion of longer-term Treasury securities over the next six months. 
Press Release 

The Treasury's Community Development Financial Institutions Fund releases its implementation plan to award nearly $100 million in grants and $3 billion in additional tax credit authority to support community-based financial institutions. These awards are meant to support loan funds, credit unions, banks, venture capital firms and other financing entities in serving underserved populations and communities. 

March 17, 2009

The Federal Reserve announces the adoption of a final rule that delays until March 31, 2011, the effective date of new limits on the inclusion of trust preferred securities and other restricted core capital elements in tier 1 capital of bank holding companies (BHCs). This action is being taken in light of continued stress in financial markets and the efforts of BHCs to increase their overall capital levels.
Press Release

The FDIC extends the debt guarantee portion of the TLGP from June 30, 2009 through October 31, 2009, and decides to impose a surcharge on debt issued with a maturity of one-year or more beginning in the second quarter to gradually phase-out the program.
Press Release

The FHFA submits to Congress its latest report as a Federal Property Manager detailing actions it has taken to prevent unnecessary foreclosures. The report shows a 76 percent increase in loan modifications by Fannie Mae and Freddie Mac from the third to fourth quarters of 2008. There were 23,777 loan modifications during the fourth quarter, compared to 13,488 during the third quarter.

March 16, 2009

As another part of the Consumer and Business Lending Initiative, the Treasury announces that it will – by the end of the month – begin making direct purchases of securities backed by SBA loans to get the credit market moving again, and that it will stand ready to purchase new securities to ensure that community banks and credit unions feel confident in extending new loans to local businesses. 

March 11, 2009

The Federal Reserve proposes amendments to Regulation Z (Truth in Lending) that would revise the disclosure requirements for private education loans. The amendments implement provisions of the Higher Education Opportunity Act. Under the amendments, creditors that extend private education loans would provide disclosures about loan terms and features on or with the loan application and would also have to disclose information about federal student loan programs that may offer less costly alternatives.
Press Release

March 10, 2009

The OCC publishes a Community Developments Insights report that describes how banks and their partners in the community are working to dispose of foreclosed properties in creative ways that will preserve affordable housing opportunities and stabilize communities.
Press Release

March 9, 2009

The Federal Reserve offers $150 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

Senior financial supervisors from seven countries (collectively, the "Senior Supervisors Group") issues a report that assesses how firms manage their credit default swap activities related to the settlement of credit derivatives transactions terminated by the occurrence of a credit event.
Press Release

March 6, 2009

Freedom Bank of Georgia, Commerce, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Northeast Georgia Bank, Lavonia, Georgia, to assume all of the deposits of Freedom Bank of Georgia.
Press Release

March 5, 2009

The SEC announces that it has enlisted the services of the Center for Enterprise Modernization, a federally funded research and development center operated by The MITRE Corporation, to begin immediately working with the SEC to conduct a comprehensive review of internal procedures used to evaluate tips, whistleblower complaints, and referrals. The agency is seeking to establish a more centralized process that will more effectively identify valuable leads for potential enforcement action as well as areas of high risk for compliance examinations.
Press Release

The CFTC has adopted, and has approved for publication in the Federal Register, amendments to Regulations 4.26 and 4.36, concerning the electronic filing of Disclosure Documents by commodity pool operators and commodity trading advisors, respectively (Amendments). The Amendments are being made in response to a petition from the National Futures Association (NFA), and they are intended to be in furtherance of NFA’s compliance and enforcement programs.
Press Release

March 4, 2009

The Treasury releases new guidelines to enable servicers to begin modifications of eligible mortgages under the Administration's "Making Home Affordable" program. The guidelines implement financial incentives for mortgage lenders to modify existing first mortgages and set standard industry practice for modifications. The Treasury also announces that the program will include additional incentives for efforts made to extinguish second liens on loans modified under this program.

March 3, 2009

In carrying out the Financial Stability Plan, the Treasury and the Federal Reserve announce the launch of the Term Asset-Backed Securities Loan Facility (TALF). The TALF is designed to catalyze the securitization markets by providing financing to investors to support their purchases of certain AAA-rated asset-backed securities.  These markets have been virtually shuttered since October. By reopening them, the TALF will assist lenders in meeting the borrowing needs of consumers and small businesses, helping to stimulate the broader economy.
Press Release

March 2, 2009

In order to stabilize AIG, the Treasury and the Federal Reserve announce a restructuring of the government's assistance to the company. As part of the restructuring plan, the Treasury will exchange its existing $40 billion cumulative perpetual preferred shares for new preferred shares with revised terms that more closely resemble common equity. The Treasury will also create a new equity capital facility, which allows AIG to draw down up to $30 billion in exchange for non-cumulative preferred stock to the Treasury. The Federal Reserve will take several actions relating to the $60 billion Revolving Credit Facility for AIG, including reducing the facility in exchange for preferred interests in two special purpose vehicles.
Press Release

February 27, 2009

To ensure the continued strength of the Deposit Insurance Fund (DIF), the FDIC votes to amend the restoration plan for the DIF, imposes a special assessment on insured institutions of 20 basis points, implements changes to the risk-based assessment system, and sets rates beginning the second quarter of 2009. The FDIC also votes to modify the debt guarantee component of the TLGP to allow participating entities, with the FDIC's permission, to issue mandatory convertible debt. This change is meant to provide institutions additional options for raising capital and reducing the concentration of FDIC-guaranteed debt maturing in mid-2012.
Press Release

Heritage Community Bank, Glenwood, Illinois, is closed by the Illinois Department of Financial Professional Regulation, Division of Banking, which appointed the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with MB Financial Bank, N.A., Chicago, Illinois, to assume all of the deposits of Heritage Community Bank.
Press Release

Security Savings Bank, Henderson, Nevada is closed by the Nevada Financial Institutions Division, which appointed the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Bank of Nevada, Las Vegas, Nevada, to assume all of the deposits of Security Savings Bank.
Press Release

The Treasury announces that it will participate in a series of exchange offers converting a significant portion of Citigroup’s preferred securities to common equity. Under the exchange, the Treasury will convert up to the $25 billion of preferred stock issued under the Capital Purchase Program. Remaining Treasury and FDIC preferred issued under the Targeted Investment Program and Asset Guarantee Program will be converted into a trust preferred security of greater structural seniority that would carry the same 8% cash dividend rate as the existing issue. 

February 26, 2009

The FDIC announces the conclusion of the sale of $1.45 billion of performing and nonperforming residential and commercial construction loans in distressed markets through the use of two private/public partnership transactions. In the two recent transactions, the FDIC placed the loans into a limited liability corporation. The FDIC retained an 80 percent interest in the assets with the winning bidder picking up an initial 20 percent stake. Once certain performance thresholds are met, the FDIC's interest drops to 60 percent. The future expenses and income will be shared on the percentage ownership of the purchaser and the FDIC.
Press Release

The FDIC announces that the commercial banks and savings institutions it insures experienced a net loss of $26.2 billion in the fourth quarter of 2008, a decline of $27.8 billion from the $575 million that the industry earned in the fourth quarter of 2007 and the first quarterly loss since 1990. Rising loan-loss provisions, losses from trading activities and goodwill write-downs all contributed to the quarterly net loss as banks continue to repair their balance sheets in order to return to profitability in future periods.
Press Release

The FHFA reports that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased 42 basis points to 5.09 percent in January. The average interest rate on 15-year, fixed-rate loans of $417,000 or less decreased 32 basis points to 5.11 percent in January.
FHFA News Release

February 25, 2009

The federal bank regulatory agencies announce that they will start conducting forward-looking economic assessments of large U.S. banking organizations as the Capital Assistance Program gets underway. Supervisors will work with institutions to estimate the range of possible future losses and the resources to absorb such losses over a two-year period.
Press Release

The Treasury announces the terms and conditions for the Capital Assistance Program (CAP). The purpose of the CAP is to restore confidence throughout the financial system that the nation's largest banking institutions have a sufficient capital cushion against larger than expected future losses, should they occur due to a more severe economic environment, and to support lending to creditworthy borrowers.

February 24, 2009

The CTFC proposes to amend its regulations regarding periodic and annual reporting requirements applicable to commodity pool operators. Among other things, the proposed changes would specify detailed information that must be included in the periodic account statements and annual reports for commodity pools with more than one series or class of ownership interest.
Press Release

The FHFA releases its House Price Index, which shows that U.S. home prices posted record declines in the fourth quarter of 2008. The FHFA seasonally adjusted purchase-only house price index, based on data from home sales, was 3.4 percent lower on a seasonally adjusted basis in the fourth quarter than in the third quarter. This decline was greater than the two percent decline in the third quarter and the largest in the purchase-only index’s 18-year history. Over the past year, seasonally adjusted prices fell 8.2 percent from the fourth quarter of 2007 to the fourth quarter of 2008.

February 23, 2009

The Federal Reserve offers $150 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

The Federal Reserve launches a new section of its Web site – "Credit and Liquidity Programs and the Balance Sheet" – which presents a wide range of material, including a detailed explanation of the Federal Reserve's balance sheet; descriptions of all of the Federal Reserve's liquidity and credit facilities; discussion of the Federal Reserve's risk-management practices; information on the types and amounts of collateral being pledged at the various lending facilities; and an extensive set of links to congressional reports and other resources.
Press Release

The FHFA announces an increase in the maximum conforming loan limit for mortgages originated in 2009. The increase affects 250 counties across the United States. For these areas Fannie Mae and Freddie Mac loan limits will return to their late-2008 levels, which were up to $729,750 for one-unit properties in the continental United States. The new limits are authorized by American Recovery and Reinvestment Act.
Press Release

February 21, 2009

In accordance with the American Recovery and Reinvestment Act, the Treasury begins directing employers to reduce the amount of taxes withheld from the paychecks of millions of American workers.

February 20, 2009

Silver Falls Bank, Silverton, Oregon, is closed by the Oregon Department of Consumer and Business Services, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Citizens Bank, Corvallis, Oregon, to assume all of the deposits of Silver Falls Bank.
Press Release

The CTFC approves for publication in the Federal Register a proposal to amend CFTC regulations 1.20, 1.26, and 30.7 to clarify the required content of the acknowledgment letter that a futures commission merchant or derivatives clearing organization must obtain from any depository holding its segregated customer funds or funds of foreign futures or foreign options customers.
Press Release

February 18, 2009

Hoping to slow the rapid decline in the housing market, the President announces the Homeowner Affordability and Stability Plan. The key components of the plan include: 1) access to low cost refinancing for responsible homeowners; 2) a $75 billion Homeowner Stability Initiative to reach up to 3 to 4 million at-risk homeowners; and 3) an increased funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability.

The Treasury receives restructuring reports from Chrysler LLC and General Motors Corporation. The reports are required under the terms of the loans made available to these companies in December to assist the domestic auto industry in becoming financially viable.

February 17, 2009

The Treasury releases its first monthly bank lending survey designed to provide new, more frequent and more accessible information on banks' lending activities to help taxpayers easily assess the lending and other activities of banks receiving government investments.

The OCC issues the newest edition of its Bank Accounting Advisory Series, which expresses the OCC’s current views on accounting topics of interest to national banks. This December 2008 update includes major revisions to the OCC’s interpretation of generally accepted accounting principles and regulatory capital requirements.
Press Release

President Barack Obama signs the American Recovery and Reinvestment Act of 2009 into law, a $787 billion mix of tax cuts and one of the biggest public spending programs since World War II. The stimulus package will pump money into highway, bridge and other infrastructure projects, health care, renewable energy development and conservation. It includes a $400 tax break for most individual workers and $800 for couples, including those who do not earn enough to pay income taxes. It will distribute tens of billions of dollars to states so they can head off deep cuts and layoffs and will provide financial incentives for people to start buying again, from first homes to new cars to shoes and cereal. It also provides help to poor people and laid-off workers, with increased unemployment benefits and food stamps, and subsidies for health insurance.
The New York Times article

February 13, 2009

Sherman County Bank, Loup City, Nebraska, is closed by the Nebraska Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Heritage Bank, Wood River, Nebraska, to assume all of the deposits of Sherman County Bank.
Press Release

Riverside Bank of the Gulf Coast, Cape Coral, Florida, is closed by the Florida Office of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with TIB Bank, Naples, Florida, to assume all of the deposits of Riverside Bank.
Press Release

Corn Belt Bank and Trust Company, Pittsfield, Illinois, is closed by the Division of Banking, Illinois Department of Financial Regulation, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with The Carlinville National Bank, Carlinville, Illinois, to assume all of the deposits of Corn Belt Bank and Trust Company.
Press Release

Pinnacle Bank, Beaverton, Oregon, is closed by the Oregon Division of Finance and Corporate Securities, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Washington Trust Bank, Spokane, Washington, to assume all of the deposits of Pinnacle Bank.
Press Release

The OCC and the OTS expand the scope of the mortgage performance data gathered from national banks and thrifts to include additional information on the affordability and sustainability of loan modifications. The additional data will show how loan modifications changed the total amount of borrowers’ monthly principal and interest payments in 2008. The agencies hope this will help inform lenders and policymakers as to what type of modifications work.
Press Release

The CFTC announces that it has approved a request by the Chicago Board of Trade (CBOT) to limit the number of delivery instruments an entity can hold for non-commercial purposes. This limit restricts the number of certificates/receipts anyone can hold to an amount equal to the spot month speculative position limit. The amendments are intended to reduce the potential for the significant accumulation of delivery instruments by participants employing strategies not directly related to commercial activities and which might negatively impact contract performance.
Press Release

February 12, 2009

As required by the EESA, the FHFA submits to Congress the latest report as a Federal Property Manager detailing actions the FHFA is taking to prevent unnecessary foreclosures. The FHFA is a designated FPM in its role as conservator for Fannie Mae and Freddie Mac.
Press Release

February 10, 2009

Following Secretary Geithner’s statement, the Treasury, Federal Reserve, FDIC, OCC, and OTS further detail the core elements of the Financial Stability Plan.
Press Release

The Federal Reserve announces that it is prepared to undertake a substantial expansion of the TALF. The expansion could increase the size of the TALF to as much as $1 trillion and could broaden the eligible collateral to encompass other types of newly issued AAA-rated asset-backed securities, such as commercial mortgage-backed securities, private-label residential mortgage-backed securities, and other asset-backed securities. 
Press Release 

Responding to widespread criticism of how the TARP has been managed, Treasury secretary, Timothy F. Geithner, announces a new Financial Stability Plan. The plan will include several major components including: 1) a public private investment fund, often described as a “bad bank,” to buy up hard-to-sell assets; 2) direct capital injections into banks; and  3) a vast expansion of the TALF.
The New York Times article

February 9, 2009

The Federal Reserve offers $150 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

February 6, 2009

The Federal Reserve releases additional terms and conditions – including loan rates and collateral haircuts – of the TALF. The additions were determined after further analysis and consultation with issuers, investors, and dealers in asset-backed securities.
Press Release

Alliance Bank, Culver City, California, is closed by the California Department of Financial Institutions, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with California Bank & Trust, San Diego, California, to assume all of the deposits of Alliance Bank. The FDIC and California Bank & Trust also enter into a loss-share transaction. California Bank & Trust will share in the losses on the asset pools covered under the loss-share agreement.
Press Release

FirstBank Financial Services, McDonough, Georgia, is closed by the Georgia Department of Banking and Finance, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Regions Bank, Birmingham, Alabama, to assume all of the deposits of FirstBank Financial Services.
Press Release

The FHFA releases the November monthly Foreclosure Prevention Report, which provides comprehensive monthly data on the loss mitigation efforts of Fannie Mae and Freddie Mac as well as information on delinquencies, foreclosures initiated and foreclosures completed.  According to the report, loan modifications for October and November, which were the first two full months of the conservatorship, increased by 50 percent from the previous two months.

County Bank, Merced, California, is closed by the California Department of Financial Institutions, which appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with Westamerica Bank, San Rafael, California, to assume all of the deposits of County Bank.
Press Release

Having been made aware of an industry misunderstanding of the record retention requirements of Regulations 1.35 and 1.31 as it relates to electronically conveyed records, the CFTC issues an advisory to make certain that the individuals and entities subject to the Commission’s recordkeeping requirements maintain all electronic forms of communications, including email, instant messages, and any other form of communication created or transmitted electronically for all trading.

February 4, 2009

Amid rising public fury about the recent pay packages given to executives, the Treasury issues a new set of guidelines on executive pay for financial companies receiving government assistance. The guidelines include a salary cap of $500,000 and a prohibition against the receipt of any bonuses above base pay.
The New York Times article

As part of its ongoing efforts to bring more transparency to the markets it regulates, the CFTC launches, on a six-month trial basis, a new monthly report: “This Month in Futures Markets.” The report will draw from the Commission’s Commitment of Traders data and display various market statistics for 22 actively-traded commodity markets. 
Press Release

February 3, 2009

In light of continuing substantial strains in many financial markets, the Federal Reserve announces the extension, through October 30, 2009, of its existing liquidity programs that were scheduled to expire on April 30, 2009. In addition, to address continued pressures in global U.S. dollar funding markets, the temporary reciprocal currency arrangements (swap lines) between the Federal Reserve and other central banks have been extended to October 30.
Press Release

The Treasury announces investments of approximately $1.15 billion in 42 banks across the nation as part of its Capital Purchase Program. The largest investment, totaling $267 million, was issued to Flagstar Bancorp of Michigan.

January 30, 2009

The Federal Reserve publishes a policy that was adopted to help avoid preventable foreclosures on certain residential mortgage assets held, owned, or controlled by a Federal Reserve Bank. The Federal Reserve has decided to apply the policy to the residential mortgage assets held by Maiden Lane, LLC, Maiden Lane II, LLC and Maiden Lane III, LLC. Maiden Lane, LLC was formed to facilitate the acquisition of The Bear Stearns Companies, Inc. by JPMorgan Chase. Maiden Lane II, LLC and Maiden Lane III, LLC were established in connection with the restructuring of the assistance provided by the government to American International Group, Inc. 
Press Release

The Federal Reserve announces two final rules pertaining to the Asset-Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF). The first rule provides a temporary limited exception from the Board's leverage and risk-based capital rules for bank holding companies and state member banks. The second rule provides a temporary limited exception from certain restrictions on and requirements for transactions between a bank and its affiliates. The two final rules will facilitate participation by depository institutions and bank holding companies as intermediaries between the AMLF and money market mutual funds. The Federal Reserve has also adopted a third final rule that allows all insured depository institutions to provide liquidity to their affiliates for assets typically funded in the tri-party repo market.
Press Release

MagnetBank, Salt Lake City, Utah is closed by the Utah Department of Financial Institutions and the FDIC is named receiver. The FDIC approves the payout of the insured deposits of MagnetBank. 
Press Release

Suburban Federal Savings Bank, Crofton, Maryland, is closed by the OTS, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with Bank of Essex, Tappahannock, Virginia, to assume all of the deposits of Suburban Federal. The FDIC also enters into a loss-share transaction with the Bank of Essex.  
Press Release 

Ocala National Bank, Ocala, Florida, is closed by the OCC, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with CenterState Bank of Florida, Winter Haven, Florida, to assume all of the deposits of the Ocala National Bank. 
Press Release

January 29, 2009

The Federal Reserve requests public comment on proposed changes to Regulation D (Reserve Requirements of Depository Institutions) to authorize the establishment of limited purpose accounts, called "excess balance accounts" (EBAs), at Federal Reserve Banks. The authorization of EBAs for the excess balances of institutions eligible to receive earnings on their balances maintained at Federal Reserve Banks is intended to address pressures on correspondent-respondent business relationships in the current market environment.
Press Release

January 28, 2009

The Federal Reserve decides to keep its target range for the federal funds rate at 0 to 1/4 percent. It continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.
Press Release

With the goal of increasing transparency and accountability in the TARP, the Treasury announces a new policy of posting investment contracts for future completed transactions to the Department's website within 5 to 10 business days. For contracts already completed, documents will be posted on a rolling basis beginning today with the first nine contracts completed under the Capital Purchase Program.

January 27, 2009

The FDIC issues a final rule on processing deposit accounts in the event of failure. The final rule, which is a follow-up to the FDIC's issuance of an interim rule in July 2008, establishes the FDIC's practices for determining, for deposit insurance and receivership purposes, deposit and other account balances at a failed depository institution. The final rule also requires that insured depository institutions inform their sweep account customers of the nature of their swept funds and how those funds would be treated if the institution should fail.
Press Release

The FDIC proposes for comment a regulatory change in the way the FDIC administers its statutory restrictions on the deposit interest rates paid by banks that are less than Well Capitalized. The FDIC is required to prevent banks that are less than Well Capitalized from soliciting deposits at interest rates that significantly exceed prevailing rates. The proposed regulation would define nationally prevailing deposit rates as a direct calculation of those national averages, as computed and published by the FDIC based on data available to it. The proposed regulation would also establish a presumption that locally prevailing deposit rates equal the national rates published by the FDIC.
Press Release

The Treasury announces new rules designed to limit the influence of lobbyists and special interests in the EESA process and ensure that investment decisions are guided by objective assessments. 

The FHFA reports that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased 66 basis points to 5.51 percent in December. The average interest rate on 15-year, fixed-rate loans of $417,000 or less decreased 44 basis points to 5.43 percent in December.
FHFA News Release

The FHFA sends to the Federal Register two interim final rules that implement sections of the Housing and Economic Recovery Act of 2008. The first interim final rule adopts as the standard for Fannie Mae’s and Freddie Mac’s portfolio holdings the criteria set forth in the Senior Preferred Stock Purchase Agreements executed between the Treasury and FHFA in September 2008. The second interim final rule addresses both the critical capital level and four capital classification categories – adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized – with regard to Federal Home Loan Banks.

The Treasury announces investments of approximately $386 million in 23 banks across the nation as part of its Capital Purchase Program. The three largest capital infusions went to 1st Source Corp. in South Bend, Ind. ($111 million), Liberty Bancshares, Inc. in Jonesboro, Ark. ($57.5 million), and WSFS Financial Corp. in Wilmington, Del. ($52.6 million).

January 26, 2009

The Federal Reserve offers $150 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

1st Centennial Bank, Redlands, California, is closed by the California Department of Financial Institutions, which then appoints the FDIC as receiver. The FDIC enters into a purchase and assumption agreement with First California Bank, Westlake Village, California, to assume the insured deposits of 1st Centennial.
Press Release

The CFTC issues its annual guidance letter to registered commodity pool operators (CPOs). The letter is intended to assist CPOs, and their public accountants, in complying with the Commission’s regulations on the preparation and filing of commodity pool annual financial reports.
Press Release 

In an interpretive letter, the OCC concludes that FDIC-guaranteed senior unsecured debt issued by a national bank under the Debt Guarantee Program of the TLGP does not have to be registered with the OCC. The exemption from registration is only applicable to debt that matures on or before June 30, 2012, the expiration date of the FDIC’s guarantee under the TLGP Debt Guarantee Program.

January 22, 2009

The FHFA releases its monthly House Price Index, which indicates that U.S. home prices fell 1.8 percent on a seasonally-adjusted basis from October to November. This is more than the 1.1 percent decline in the prior month. For the 12 months ending in November, U.S. prices fell 8.7 percent. The decline since the April 2007 peak is 10.5 percent.

The Treasury announces details of a $1.5 billion investment in 39 banks made through its Capital Purchase Program. The amount invested in each bank ranges from $400 million provided to the First BanCorp of San Juan, Puerto Rico, to $1.75 million for the Community Bank of the Bay in Oakland, Calif.

January 16, 2009

Following Bank of America’s first net loss in seventeen years, the U.S. government enters into an agreement with the bank to provide a package of guarantees, liquidity access, and capital. Treasury and the FDIC will provide protection against the possibility of unusually large losses on an asset pool of approximately $118 billion. A majority of these assets were assumed by Bank of America as a result of its acquisition of Merrill Lynch. In return, Bank of America will issue preferred shares to the Treasury and FDIC. If necessary, the Federal Reserve will backstop residual risk in the asset pool through a non-recourse loan. In addition, Treasury will invest $20 billion in Bank of America from the TARP in exchange for preferred stock with an 8 percent dividend to the Treasury.
Press Release

The FDIC announces that it will soon propose rule changes to the TLGP to extend the maturity of the guarantee from three to up to 10 years where the debt is supported by collateral and the issuance supports new consumer lending.
Press Release

The SEC extends the deadline to January 31 for public companies’ participation in a Web-based survey about the costs and benefits of Section 404 of the Sarbanes-Oxley Act of 2002. The survey will help inform the SEC’s ongoing cost-benefit study of Section 404 implementation with a focus on the consequences for smaller companies.
Press Release

The Treasury, Federal Reserve and FDIC finalize the terms of the November 2008 guarantee agreement with Citigroup. The agreement provides protection against the possibility of unusually large losses on an asset pool of approximately $301 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Citigroup's balance sheet. The capital investment finalized last month and asset protections finalized today provide support as Citigroup executes its ongoing restructuring plans.

National Bank of Commerce, Berkeley, Illinois, is closed by the OCC, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with Republic Bank of Chicago, Oak Brook, Illinois, to assume all of the deposits of National Bank of Commerce.
Press Release

Bank of Clark County, Vancouver, Washington, is closed by the Washington Department of Financial Institutions, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with Umpqua Bank, Roseburg, Oregon, to assume the insured deposits of the Bank of Clark County.
Press Release

The Treasury announces that it will make a $1.5 billion loan to a special purpose entity created by Chrysler Financial to finance the extension of new consumer auto loans as part of a broader program to assist the domestic automotive industry in becoming financially viable. The five year loan will pay interest at a rate of one month LIBOR + 100 basis points for the first year and one month LIBOR + 150 basis points for years two to five. The Treasury's loan will be secured by a senior secured interest in a pool of newly originated consumer automotive loans, and Chrysler Holding will serve as a guarantor for certain covenants of Chrysler Financial.

The Treasury issues interim final rules for reporting and recordkeeping requirements under the executive compensation standards of the TARP Capital Purchase Program. Among other things, the new rule requires the chief executive officer to certify annually within 135 days after the financial institution's fiscal year end that the financial institution and its compensation committee have complied with these executive compensation standards. 

The two private-sector committees established by the President's Working Group on Financial Markets releases their finalized sets of best practices for asset managers and hedge fund investors in an effort to increase accountability for participants in this industry.

The FHFA submits to Congress the second report as a Federal Property Manager detailing actions the FHFA is taking to prevent unnecessary foreclosures. Section 110 of the EESA directs Federal Property Managers to develop and implement plans to maximize assistance for homeowners and encourage servicers of underlying mortgages to take advantage of programs to minimize foreclosures.
FHFA News Release

The Senate votes 52-42 to defeat a "resolution of disapproval" designed to block the release of the remaining $350 billion in TARP funds. Both chambers needed to approve the resolution for it to succeed, rendering any House vote irrelevant. This ensures that the money will be available should the new Democratic president need it after he takes office on Tuesday. 
Reuters article
Wall Street Journal article

January 15, 2009

The FHFA announces that, effective with mortgage applications taken on or after January 1, 2010, Freddie Mac and Fannie Mae will be required to obtain loan-level identifiers for the loan originator, loan origination company, field appraiser and supervisory appraiser. The purpose of the FHFA’s requirement is to prevent fraud and predatory lending, to ensure mortgages owned and guaranteed by Freddie and Fannie are originated by individuals who have complied with applicable licensing and education requirements under the S.A.F.E. Mortgage Licensing Act, and to restore confidence and transparency in the credit markets.
FHFA News Release

The Federal Reserve approves Protective Life Corp.’s request to become a bank holding company.  This brings it one step closer to having access to TARP funds. The insurer is now permitted to buy Bonifay Holding Company Inc., which owns the 143rd largest depository institution in Florida.
Bloomberg.com article
Press Release

January 14, 2009

The Federal Reserve announces that it will allow Germany's Allianz SE to retain its interest in The Hartford Financial Services Group, Inc. when The Hartford becomes a savings and loan company. Allianz owns 23.7% of Hartford's voting shares. Hartford applied to become a savings and loan so that it could be eligible for TARP funds.
Press Release

The Treasury releases the term sheet and answers to frequently asked questions for qualified financial institutions applying to the Capital Purchase Program that are S corporations. The term sheet provides for issuances of debt instead of stock, unlike other term sheets for the Capital Purchase Program.

The CFTC announces that it is publishing a Request for Comments on proposed amendments to the definition of “public director” contained in its acceptable practices for Section 5(d)(15) (Core Principle 15) of the Commodity Exchange Act. The new amendments are designed to ensure that boards of exchanges have strong, independent voices so as to improve governance and self-regulatory oversight of the futures markets. 
Press Release

The Federal Financial Institutions Examination Council (FFIEC) issues guidance for examiners, financial institutions, and technology service providers to identify risks, evaluate controls, and assess risk management practices related to remote deposit capture (RDC) systems. RDC enables customers to make deposits from their homes or businesses instead of taking deposits to their financial institutions. The FFIEC is composed of the Board of Governors of the Federal Reserve System, FDIC, NCUA, OCC, OTS, and the State Liaison Committee.
Press Release

January 13, 2009

The Treasury announces details of a $14.77 billion investment in 43 banks made through its Capital Purchase Program. This brings its total investments to $192 billion in 257 financial institutions. The biggest transaction was $10 billion provided to Bank of America Corp. The department also invested $3.39 billion in credit card issuer American Express Co.

January 12, 2009

The Federal Reserve offers $150 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

January 8, 2009

An OCC Interpretive Letter concludes that the guarantee of a qualifying debt security by the FDIC under its TLGP would transform a qualifying security into a Type I security for purposes of the OCC’s investment securities regulations.  In cases where the security’s tenor is coextensive with the term of the guarantee, the security will qualify as a Type I security.

The Treasury releases the fourth Tranche Report to Congress, as required by section 105(b) of the EESA. The report describes all the transactions made during the reporting period, the pricing mechanism for the transactions, a justification of the financial terms associated with the transactions, and the transactions’ impact on the financial system. The report also details the challenges that remain in the financial system and additional actions that may be necessary to address such challenges.

January 7, 2009

The Federal Reserve announces two changes to the Money Market Investor Funding Facility (MMIFF). First, the set of institutions eligible to participate in the MMIFF will be expanded to also include a number of other money market investors such as U.S.-based securities-lending cash-collateral reinvestment funds, portfolios, and accounts (securities lenders); and U.S.-based investment funds that operate in a manner similar to money market mutual funds. Second, there will be an adjustment to several of the economic parameters of the MMIFF, including the minimum yield on assets eligible to be sold to the MMIFF, to enable the program to remain a viable source of backup liquidity for money market investors even at very low levels of money market interest rates.
Press Release

January 6, 2009

The federal financial institution regulatory agencies announce the publication of new and revised Interagency Questions and Answers Regarding Community Reinvestment that, among other things, encourage financial institutions to take steps to help prevent home mortgage foreclosures. The Questions and Answers interpret the agencies’ Community Reinvestment Act regulations and provide guidance to financial institutions and the public.
Press Release

The Treasury releases a report required by section 105(a) of the EESA. The report to Congress outlines the investments and costs related to the TARP through Dec. 31 as well as some projections through the end of January. According to the report, the Treasury expects the cost of administering its financial-industry rescue program to reach more than $6.5 million by the end of the month. 

January 2, 2009

The Treasury releases its Emergency Economic Stabilization Report as required by section 102 of the EESA.

The Treasury releases the program description for the Targeted Investment Program under which the Citigroup investment that was announced on Nov. 23 was made. This program description is required by Section 101(d) of the EESA.

December 31, 2008

The FDIC signs a letter of intent to sell the banking operations of IndyMac Federal Bank to a thrift holding company controlled by IMB Management Holdings LP.
Press Release

The Treasury invests $15 billion in 7 banks through its Capital Purchase Program. The biggest payment in the new round totals $7.58 billion to Pittsburgh-based PNC Financial Services Group Inc. Treasury also provides $3.41 billion to Fifth Third Bancorp of Cincinnati and $1.35 billion to Atlanta-based SunTrust Banks Inc.

December 30, 2008

The FHFA releases its Monthly Interest Rate Survey of purchase-money mortgages. The average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less increased 5 basis points to 6.17 percent in November. The average interest rate on 15-year, fixed-rate loans of $417,000 or less decreased 9 basis points to 5.87 percent in November.

The Federal Reserve announces that it expects to begin operations in early January under the previously announced program to purchase mortgage-backed securities (MBS) and that it has selected private investment managers to act as its agents in implementing the program. Under the MBS purchase program, the Federal Reserve will purchase MBS backed by Fannie Mae, Freddie Mac, and Ginnie Mae; the program is being established to support the mortgage and housing markets and to foster improved conditions in financial markets more generally.
Press Release

The SEC delivers a report to Congress mandated by the EESA that recommends against the suspension of fair value accounting standards. The report recommends improvements to existing practice, including reconsidering the accounting for impairments and the development of additional guidance for determining fair value of investments in inactive markets, including situations where market prices are not readily available.
SEC Press Release

December 29, 2008

The Federal Reserve offers $150 billion in 83-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

The OCC releases its Quarterly Report on Bank Trading and Derivatives Activities. Insured U.S. commercial banks reported $6.0 billion in revenues from trading cash and derivative instruments in the third quarter, compared to revenues of $1.6 billion in the second quarter of 2008. Most of the increase in trading revenue is due to the deterioration in credit spreads during the third quarter and the subsequent decline in the value of trading liabilities for most banks.
Press Release

The SEC announces that it has approved revisions to modernize its oil and gas company reporting requirements to help investors evaluate the value of their investments in these companies. The new disclosure requirements permit the use of new technologies to determine proved reserves and allow the disclosure of probable and possible reserves to investors. They also require companies to report the independence and qualifications of a reserves preparer or auditor; file reports when a third party is relied upon to prepare reserves estimates or conducts a reserves audit; and report oil and gas reserves using an average price based upon the prior 12-month period rather than year-end prices. 
SEC Press Release

The Treasury announces that it will purchase $5 billion in senior preferred equity with an 8% dividend from GMAC LLC as part of a broader program to assist the domestic automotive industry in becoming financially viable. Additionally, the Treasury agrees to lend up to $1 billion to General Motors so that GM can participate in a rights offering at GMAC in support of GMAC's reorganization as a bank holding company.  

December 24, 2008

The Federal Reserve approves the application of GMAC LLC, the financial arm of General Motors Corp., to become a bank holding company, making it eligible for funds under the TARP. 
Press Release

The CFTC is reopening the public comment period for a petition submitted jointly by the Chicago Mercantile Exchange Inc. (CME) and the Board of Trade of the City of Chicago, Inc. (CBOT) in connection with certain over-the-counter agricultural contracts to be listed for clearing-only on the CBOT and cleared through CME. The comment period is being reopened due to the non-transmission of a comment letter that was submitted through the Federal Rulemaking Portal. The original comment period ran from July 8, 2008 to August 21, 2008. 

IRS issues Rev. Proc. 2009-10, 2009-2 IRB, creating a safe harbor for the treatment of certain payments by money market funds. In the event that a money market fund investment advisor or manager either makes a payment to the fund or purchases an asset of the fund in excess of its fair market value in order to prevent the per share net asset value from falling below $1 (“breaking the buck”), the Service will not challenge the fund’s treatment of the payment or excess amount received as capital gain in the taxable year in which it is received.

December 23, 2008

Treasury closes a $1.9 billion investment in 43 banks through its Capital Purchase Program.

The FHFA releases its monthly House Price Index, which indicates that U.S. home prices fell 1.1 percent on a seasonally-adjusted basis from September to October, less than the 1.2 percent decline in the prior month. For the 12 months ending in October, U.S. prices fell 7.5 percent. The decline since the April 2007 peak is 8.8 percent.

The FHFA announces that Fannie Mae and Freddie Mac will implement a revised Home Valuation Code of Conduct (Code) effective May 1, 2009. The revised Code builds on existing Fannie Mae and Freddie Mac seller-servicer guidelines to increase the reliability of appraisals for loans sold to them for their portfolios or for securitization. The Code will help assure that borrowers, homebuyers and secondary mortgage market investors receive fair and independent property valuations.
FHFA News Release

Seeking to further stabilize financial markets by reducing counterparty risk and helping to promote efficiency in the credit default swap market, the SEC approves temporary exemptions allowing LCH.Clearnet Ltd. to operate as a central counterparty for credit default swaps. The temporary exemptions will facilitate central counterparties such as LCH.Clearnet and certain of their participants to implement centralized clearing quickly, while providing the Commission time to review their operations and evaluate whether registrations or permanent exemptions should be granted in the future.
SEC Press Release

The CFTC announces that the Chicago Mercantile Exchange Inc. (CME) has certified plans to provide clearing services for certain credit default swap contracts (CDS) through CME’s clearinghouse, a registered derivatives clearing organization (DCO). CME has certified that this initiative will comply with the DCO Core Principles enumerated in Section 5b(c)(2) of the Commodity Exchange Act and Part 39 of the CFTC’s regulations.  Prior to CME’s certification, CFTC staff reviewed CME’s plans to clear credit default swaps, including CME’s planned risk management procedures, and notified CME that the CFTC staff would not object to the certification.

December 22, 2008

The OCC and the OTS issue their second report on mortgage performance. While delinquencies, foreclosures in process, and other actions leading to home forfeiture continued to rise, newly initiated foreclosures dropped by 2.6 percent from the second to the third quarter of 2008.  Loan modifications continued to grow more quickly than other loss mitigation strategies. The number of new loan modifications increased 16 percent in the third quarter to more than 133,000. New in this report are re-default rates on modified loans.  The number of loans modified in the first quarter that were 30 or more days delinquent was 37 percent after three months and 55 percent after six months. The number of loans modified in the first quarter that were 60 or more days delinquent was 19 percent at three months and nearly 37 percent after six months. 
Press Release

The Federal Reserve approves CIT Group Inc.’s request to convert into a bank holding company. This puts the firm one step closer toward getting an investment of as much as $2.5 billion from the TARP.
Bloomberg.com article
Press Release

December 19, 2008

The Federal Reserve releases revised terms and conditions and questions and answers detailing operational aspects of the TALF. The revised terms and conditions were determined after consultation with asset-backed securities (ABS) issuers, investors, and dealers, and include an extension of the TALF loan maturity from one to three years and additional specification of eligible ABS collateral. In addition, to provide more certain investor access, TALF loans will be provided to all eligible borrowers with eligible collateral rather than distributed through an auction.
Press Release

The Federal Reserve announces that it will not pursue at this time its proposal to change the daylight overdraft posting rules under its Payment System Risk (PSR) policy. In response to the proposal, almost all commenters stated that the posting-rule change would place additional costs and liquidity pressures on many institutions at this time and would not necessarily address some of the issues discussed for making the change. 
Press Release

The Federal Reserve adopts revisions to its Payment System Risk (PSR) policy that are designed to improve intraday liquidity management and payment flows for the banking system, while also helping to mitigate the credit exposures of the Federal Reserve Banks from daylight overdrafts. The revised PSR policy will implement a new approach that explicitly recognizes the role of the central bank in providing intraday balances and credit to healthy depository institutions predominately through collateralized daylight overdrafts.
Press Release

In order to stave off the bankruptcy of one or more auto companies, President Bush announces a plan to stabilize auto makers. Under the plan, the Treasury will make loans using authority provided for the TARP. As a result of this decision, the Treasury effectively has allocated the first $350 billion from the TARP. Along with the President’s announcement, the Treasury releases term sheets for the automotive plan.

The Treasury invests $2.8 billion in 49 banks through its Capital Purchase Program. The investments include 14 privately held banks, the first time the Treasury has recapitalized private banks.

December 18, 2008

The Federal Reserve publishes its annual notice of the asset-size exemption threshold for depository institutions under Regulation C, which implements the Home Mortgage Disclosure Act. The asset-size exemption for depository institutions will increase from $37 million to $39 million. As a result, depository institutions with assets of $39 million or less as of December 31, 2008, are exempt from collecting data in 2009 about applications for, and originations and purchases of, home purchase loans, home improvement loans, and refinancings.
Press Release

The Federal Reserve approves final rules that better protect credit card users by prohibiting certain unfair acts or practices. Among other things, the rules will protect consumers from unexpected interest charges, require that consumers receive a reasonable amount of time to make their credit card payments and address subprime credit cards by limiting the fees that reduce the amount of available credit. The Board also adopts final rules to improve the disclosures consumers receive in connection with credit card accounts and other revolving credit plans. The rules ensure that information is provided in a timely manner and in a form that is readily understandable. The Board separately proposes rules amending Regulation E (Electronic Fund Transfers), which will provide consumers a choice regarding their institution's payment of overdrafts for automated teller machine withdrawals and one-time debit card transactions. In a related move, the Board adopts final amendments to Regulation DD (Truth in Savings) to address depository institutions' disclosure practices related to overdraft services.
Press Release

Hoping to increase the speed, accuracy and usability of financial disclosure, the SEC votes to require public companies and mutual funds to use interactive data for financial information.
Press Release

December 17, 2008

The Federal Reserve extends the end of the comment period on its proposal to revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending) from January 23, 2009, to February 9, 2009. The revisions would implement the Mortgage Disclosure Improvement Act, which was enacted in July 2008 as an amendment to the Truth in Lending Act.
Press Release

The SEC approves a new rule to help protect seniors and other investors from fraudulent and abusive practices that can occur in the sale of equity-indexed annuities. The rule establishes, on a prospective basis, the standards for determining when equity-indexed annuities are considered not to be annuity contracts under the securities laws and thus subject to the investor protections against fraud and misrepresentation, limiting the potential for sales practice abuses in the promotion of equity-indexed annuities to older investors.
Press Release

The federal bank regulatory agencies announce the annual adjustment to the asset-size thresholds used to define "small bank," "small savings association," "intermediate small bank," and "intermediate small savings association” under the Community Reinvestment Act regulations. Annual adjustments to these asset-size thresholds are based on the year-to-year change in the average of the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, not seasonally adjusted, for each twelve-month period ending in November, with rounding to the nearest million.
Press Release

December 16, 2008

Because the outlook for economic activity has weakened further and inflationary pressures have diminished appreciably, the Federal Reserve establishes a target range for the federal funds rate of 0 to 1/4 percent. It also approves a 75-basis-point decrease in the discount rate to 1/2 percent and establishes interest rates on required and excess reserve balances of 1/4 percent.
Press Release

Due to the higher levels of bank failures and the resulting increase in its resolution costs, the FDIC votes to adopt a final rule increasing risk-based assessment rates uniformly by 7 basis points (7 cents for every $100 of deposits), on an annual basis, for the first quarter of 2009.
Press Release

The FDIC announces that in the third quarter, the Deposit Insurance Fund decreased by 23.5 percent ($10.6 billion) to $34.6 billion (unaudited).
Press Release

Hoping to limit the potential for uncertainty and disruption in the financial markets, the FDIC issues a final rule to improve the FDIC's ability to monitor and evaluate risks in certain insured depository institutions with qualified financial contracts, as well as assure preparedness if such institutions fail. The recordkeeping requirements in the final rule will require insured depository institutions, defined as troubled, to provide certain crucial information to the FDIC in a timely manner, including adequate position level documentation of the counterparty relationships of failed institutions.
Press Release

The federal banking and thrift regulatory agencies approve a final rule that permits a banking organization to reduce the amount of goodwill it must deduct from tier 1 capital by any associated deferred tax liability. Under the final rule, the regulatory capital deduction for goodwill would be equal to the maximum capital reduction that could occur as a result of a complete write-off of the goodwill under generally accepted accounting principles (GAAP).
Press Release

The FHFA releases the September monthly Foreclosure Prevention Report, which provides comprehensive monthly data on the loss mitigation efforts of Fannie Mae and Freddie Mac as well as information on delinquencies, foreclosures initiated and foreclosures completed. Since year-end 2007, while loans 60+ days delinquent have increased, loans for which foreclosure was started actually decreased. Loss mitigation actions have increased for all workout types. Short sale and deed-in-lieu volumes increased significantly in September 2008. In comparison to 2007, Fannie Mae and Freddie Mac’s loss mitigation performance ratio shows considerable sustained improvement with the year-to-date ratio at 54.6 percent versus 43.5 percent for 2007.
Press Release

December 15, 2008

The Federal Reserve offers $150 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

The FHFA launches the Streamlined Modification Program, which it introduced on November 11.
Press Release

December 12, 2008

Haven Trust Bank, Duluth, Georgia, is closed by the Georgia Department of Banking and Finance, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with Branch Banking & Trust, Winston-Salem, NC, to assume all of Haven Trust's deposits, including those that exceeded the insurance limit. Haven Trust is the 24th bank to fail in the nation this year, and the fifth in Georgia.
Press Release

Sanderson State Bank, Sanderson, Texas, is closed by the Texas Department of Banking, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with The Pecos County State Bank, Fort Stockton, Texas, to assume all of Sanderson State Bank's deposits, including those that exceeded the deposit insurance limit. Sanderson State Bank is the 25th bank to fail in the nation this year, and the second in Texas.
Press Release

December 11, 2008

The CFTC requests public comment on rules and rule amendments that increase the oversight of Exempt Commercial Markets (ECMs) as directed by the CFTC Reauthorization Act of 2008. ECMs are lesser-regulated electronic trading facilities that allow institutional participants to trade exempt over-the-counter commodities such as energy swaps. The proposed rules will allow the Commission to better protect the integrity of the price discovery function of regulated futures exchanges.

December 8, 2008

The FDIC provides guidance on the debt instrument reporting requirements and debt reporting instructions for the Debt Guarantee Program under the TLGP.
Press Release

December 5, 2008

The Federal Reserve proposes for public comment changes to Regulation Z (Truth in Lending) that would revise the disclosure requirements for mortgage loans. The revisions would implement the Mortgage Disclosure Improvement Act (MDIA) which was enacted as part of the Housing and Economic Recovery Act of 2008. The MDIA amends the Truth in Lending Act and seeks to ensure that consumers receive cost disclosures earlier in the mortgage process. Though substantially similar to final rules issued by the Board in July 2008, the MDIA also broadened and added to those regulatory requirements.
Press Release

The First Georgia Community Bank, Jackson, Georgia, is closed by the Georgia Department of Banking and Finance, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with United Bank, Zebulon, Georgia, to assume all of the deposits of First Georgia Community Bank.
Press Release

December 3, 2008

Informed by its extensive 10-month examination of three major credit rating agencies that found significant weaknesses in ratings practices, the SEC approves a series of measures to increase transparency and accountability at credit rating agencies, and ensure that firms provide more meaningful ratings and greater disclosure to investors. The new measures impose additional requirements on credit rating agencies. The SEC also proposes additional measures related to transparency and competition concerning credit rating agencies.
Press Release

December 2, 2008

In light of continuing strains in financial markets, the Federal Reserve announces the extension through April 30, 2009, of three liquidity facilities: PDCF, the Asset-Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF), and the TSLF. These facilities had previously been authorized through January 30, 2009.
Press Release

The FHFA submits to Congress its first report as a Federal Property Manager (FPM) detailing actions the FHFA is taking to prevent unnecessary foreclosures. The FHFA is a designated FPM in its role as conservator for Fannie Mae and Freddie Mac.
Press Release

The Treasury releases the third Tranche Report to Congress, as required by section 105(b) of the EESA. The report describes all the transactions made during the reporting period, the pricing mechanism for the transactions, a justification of the financial terms associated with the transactions, and the transactions’ impact on the financial system. The report also details the challenges that remain in the financial system and additional actions that may be necessary to address such challenges.

December 1, 2008

The Federal Reserve offers $150 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

November 26, 2008

The FDIC announces that it is establishing a modified bidder qualification process to expand the pool of qualified bidders for the deposits and assets of failing depository institutions. The process will allow interested parties that do not currently have a bank charter to participate in the bid process through which failing depository institutions are resolved.
Press Release

The Federal Reserve approves the acquisition of Merrill Lynch & Company, Inc. by Bank of America Corporation.
Press Release

November 25, 2008

The Federal Reserve Board announces the creation of the Term Asset-Backed Securities Loan Facility (TALF), a facility that will help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration. Under the facility, the Federal Reserve Bank of New York will lend up to $200 billion on a non-recourse basis to holders of certain AAA-rated ABS backed by newly and recently originated consumer and small business loans. The program is a response to the precipitous decline and then halt of new issuances of ABS and the soaring interest rate spreads on AAA-rated tranches of ABS.
Press Release

Responding to the widening rate spreads on government-sponsored entity debt and mortgages, the Federal Reserve announces that it will initiate a program to purchase the direct obligations of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks and mortgage-backed securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae. This action is intended to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally.
Press Release

Treasury announces it will allocate $20 billion in TARP funds to back the TALF.

The FHFA announces that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased 4 basis points to 6.12 percent in October. The average interest rate on 15-year, fixed-rate loans of $417,000 or less remained unchanged at 5.96 percent in October.
Press Release

According to the FHFA’s seasonally-adjusted purchase-only house price index, which is based on data from repeat home sales, U.S. home prices fell 1.8 percent in the third quarter of 2008 from the previous quarter. This decline was greater than the 1.4 percent decline in the prior quarter and the largest in the purchase only index’s 17-year history. The FHFA’s all-transactions house price index, which includes data from home sales and appraisals for refinancings, fell 2.7 percent in the latest quarter and was down 4.0 percent over the four-quarter period. The four-quarter decline was the largest four-quarter drop in the history of the index, which extends back to 1975.
Press Release

The FHFA releases its first monthly Foreclosure Prevention Report, which provides comprehensive monthly data on the loan modification efforts of Fannie Mae and Freddie Mac. Details on Fannie Mae’s HomeSaver Advance program are also included.
Press Release

November 24, 2008

The Federal Reserve offers $150 billion in 13-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

Treasury announces an extension of its Temporary Guarantee Program for Money Market Funds until April 30, 2009 in order to support ongoing stability in this market.

The SEC issues a no-action letter to the FDIC confirming that the Corporation will be able to guarantee senior unsecured debt issuances under the TLGP as a U.S. government instrumentality as described in Section 3(a)(2) of the Securities Act of 1933. Section 3(a)(2) generally provides for the exemption of certain securities from the general registration requirements of the Act.
SEC Letter

November 23, 2008

In response to a week long plunge in Citigroup’s share price, the Treasury, FDIC and, Federal Reserve announce an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. In return for preferred shares, the Treasury and the FDIC will provide protection against the possibility of unusually large losses on an asset pool of approximately $306 billion of loans and securities backed by residential and commercial real estate and other such assets. The Federal Reserve also agrees to backstop residual risk in the asset pool through a non-recourse loan if necessary. In addition, the Treasury will invest $20 billion in Citigroup from the TARP in exchange for preferred stock with an 8% dividend to the Treasury. Citigroup will comply with enhanced executive compensation restrictions and implement the FDIC's mortgage modification program.
Press Release

November 21, 2008

The FDIC approves a final rule to strengthen the agency's TLGP. The final rule makes several significant changes to the interim rule approved back October 23.
Press Release

The Community Bank, Loganville, Georgia, is closed by the Georgia Department of Banking and Finance, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with Bank of Essex, to assume all of the deposits of The Community Bank.
Press Release

U.S. Bank, National Association, Minneapolis, MN, acquires the banking operations, including all the deposits, of Downey Savings and Loan Association, F.A., Newport Beach, CA, and PFF Bank & Trust, Pomona, CA, in a transaction facilitated by the FDIC. In connection with the acquisition, the FDIC and U.S. Bank enter into a loss share transaction. U.S. Bank will assume the first $1.6 billion of losses on the asset pools covered under the loss share agreement, equal to the net asset position at close. The FDIC will then share in any further losses. Under the agreement, U.S. Bank will implement a loan modification program similar to the one the FDIC announced in August stemming from the failure of IndyMac Bank, F.S.B. These are the twenty first and twenty second banks to fail in the nation this year, and the fourth and fifth banks to close in California.
Press Release

OCC announces that it has granted its first conditional preliminary approval of a new type of national bank "shelf-charter," designed to facilitate new equity investments in troubled depository institutions. The new mechanism involves the granting of preliminary approval to investors for a national bank charter. The charter remains inactive, or "on the shelf" until such time as the investor group is in a position to acquire a troubled institution. By granting the preliminary approval, the OCC expands the pool of potential buyers available to buy troubled institutions, and in particular the new equity capital available to bid on troubled institutions through the FDIC’s bid process.
Press Release

The Treasury releases the second Tranche Report to Congress, as required by section 105(b) of the EESA. The report describes all the transactions made during the reporting period, the pricing mechanism for the transactions, a justification of the financial terms associated with the transactions, and the transactions’ impact on the financial system. The report also details the challenges that remain in the financial system and additional actions that may be necessary to address such challenges.

November 20, 2008

The FDIC announces the availability of the “Mod in a Box" guide, which gives servicers and financial institutions the necessary tools to facilitate streamlined and systematic loan modifications. The approach is based on the FDIC Loan Modification Program initiated at IndyMac Federal Bank. The Program is designed to achieve affordable and sustainable mortgage payments for borrowers and increase the value of distressed mortgages by rehabilitating them into performing loans.
Press Release

November 18, 2008

To keep temporary asset resolution staff closer to the concentration of failed bank assets they oversee, the FDIC announces it will open a temporary office in Irvine, California, to manage receiverships and to liquidate assets from failed financial institutions primarily located in the western states.
Press Release

November 17, 2008

The Federal Reserve offers $150 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

November 13, 2008

The federal bank, thrift, and credit union regulatory agencies issue for comment proposed Interagency Appraisal and Evaluation Guidelines. The guidelines clarify risk management principles and internal controls for ensuring that financial institutions' real estate collateral valuations are reliable and support their real estate-related transactions. The initiative is intended to respond to heightened concerns over appraisals and credit quality.
Press Release

November 12, 2008

The FDIC issues an Interagency Statement on Meeting the Needs of Creditworthy Borrowers to all FDIC supervised institutions. The statement encourages financial institutions to support the lending needs of creditworthy borrowers, strengthen capital, engage in loss-mitigation strategies and foreclosure-prevention strategies with mortgage borrowers, and assess the incentive implications of compensation policies.
Press Release

November 11, 2008

FHFA announces Fannie Mae and Freddie Mac’s new Streamlined Modification Program (SMP) for all mortgages. The SMP provides standards for identifying seriously delinquent homeowners and assisting them to avoid preventable foreclosure through reasonable modification of their loans.
Press Release

November 10, 2008

Amid signs that the interest on its current credit line of more than $100 billion is putting too much strain on the ailing insurer, the Federal Reserve announces that it will restructure the government's financial support to AIG.  The new measures include: 1) the purchase of $40 billion of newly issued AIG preferred shares under the TARP; 2) a modification of the terms of the existing New York Fed credit facility; and 3) the establishment of two new lending facilities relating to AIG: the Residential Mortgage-Backed Securities Facility and the Collateralized Debt Obligations Facility.
Press Release

The Federal Reserve offers $150 billion in 17-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

The Federal Reserve approves the conversion of American Express Company and American Express Travel Related Services Company, Inc. into bank holding companies.
Press Release

November 7, 2008

The FDIC extends for 30 days (until December 17, 2008) the comment period for those portions of its October 7, 2008, proposed rulemaking on risk-based assessments that would become effective April 1, 2009.
Press Release

Franklin Bank, S.S.B., Houston, Texas, is closed by the Texas Department of Savings and Mortgage Lending, and the FDIC is named receiver.  The FDIC enters into a purchase and assumption agreement with Prosperity Bank, El Campo, Texas, to assume all of the deposits, including those that exceeded the insurance limit, of Franklin Bank.
Press Release

Security Pacific Bank, Los Angeles, California, is closed by the Commissioner of the California Department of Financial Institutions, and the FDIC is named receiver.  The FDIC enters into a purchase and assumption agreement with Pacific Western Bank, Los Angeles, California, to assume all of the deposits of Security Pacific.
Press Release

Based on declines in its monthly and quarterly house price indexes over the past year, the FHFA announces that the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S.  The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009.

November 5, 2008

To help foster trading in the funds market at rates closer to the target federal funds rate, the Federal Reserve announces that it will alter the formulas used to determine the interest rates paid to depository institutions on required reserve balances and excess reserve balances.  Under the new formulas, the rate on required reserve balances will be set equal to the average target federal funds rate over the reserve maintenance period.  The rate on excess balances will be set equal to the lowest target rate in effect during the reserve maintenance period.
Press Release

November 3, 2008

The Federal Reserve offers $150 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

In order to provide organizations additional time to determine whether or not to opt of the TLGP, the FDIC extends the opt-out deadline for participation in the program.
Press Release

Treasury announces its current estimates of marketable borrowing for the October – December 2008 and January – March 2009 quarters.

Treasury hires legal firms under the EESA. 

The Treasury releases the first Tranche Report to Congress, as required by section 105(b) of the EESA. The report describes all the transactions made during the reporting period, the pricing mechanism for the transactions, a justification of the financial terms associated with the transactions, and the transactions’ impact on the financial system. The report also details the challenges that remain in the financial system and additional actions that may be necessary to address such challenges.

October 31, 2008

The federal banking and thrift regulatory agencies announce they are extending the applicability of their October 24, 2008 Interagency Statement on direct investments to certain indirect investments in Fannie Mae and Freddie Mac preferred stock. The change, made in response to a newly issued federal tax revenue procedure (Rev. Proc. 2008-64), means that banks, bank holding companies, and thrifts (banking organizations) are permitted to adjust their September 30, 2008 regulatory capital calculations for the tax effects from losses on direct and indirect investments in Fannie Mae and Freddie Mac preferred stock.
Press Release

Freedom Bank, Bradenton, Florida, is closed by the Commissioner of the Florida Office of Financial Regulation, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with Fifth Third Bank, Grand Rapids, Michigan, to assume all of the deposits of Freedom Bank. Freedom Bank is the second Florida bank and the seventeenth FDIC-insured institution to be closed this year.
Press Release

Treasury issues additional documents for publicly traded financial institutions applying for the capital purchase program authorized by the EESA. Documents include the Securities Purchase Agreement, the Form Letter Agreement, the Certificate of Designations, Form of Warrant – Stockholder Approval Not Required, Form of Warrant – Stockholder Approval Required, Term Sheet, and the SEC, FASB Letter on Warrant Accounting. 

October 29, 2008

Because the pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures, the Federal Reserve lowers its target for the federal funds rate 50 basis points to 1 percent and approves a 50-basis-point decrease in the discount rate to 1-1/4 percent.
Press Release

In response to the expansion of the global financial turmoil into emerging market economies, the Federal Reserve, the Banco Central do Brasil, the Banco de Mexico, the Bank of Korea, and the Monetary Authority of Singapore announce the establishment of temporary reciprocal currency arrangements (swap lines). Accordingly, the Federal Reserve authorizes the establishment of temporary liquidity swap facilities with the central banks of these four large and systemically important economies.
Press Release

IRS issues Rev. Proc. 2008-64, which provides that certain gains and losses from indirect ownership by banks or certain other financial institutions of Fannie Mae and Freddie Mac preferred stock can be treated as ordinary income and loss, extending the benefit of ordinary treatment for such gains and losses on direct investments granted by Sec. 301 of the EESA to the specified indirect investments, such as those made through certain partnerships or subsidiaries, or received in certain tax-free transactions.

October 28, 2008

The Federal Reserve and the Reserve Bank of New Zealand announce the establishment of a temporary reciprocal currency arrangement (swap line) to address ongoing, elevated pressures in U.S. dollar short-term funding markets. Accordingly, the Federal Reserve authorizes the establishment of a new swap facility with the Reserve Bank of New Zealand that will support the provision of U.S. dollar liquidity in amounts of up to $15 billion.
Press Release

The FHFA reports that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased 33 basis points to 6.16 percent in September. The average interest rate on 15-year, fixed-rate loans of $417,000 or less decreased 14 basis points to 5.96 percent in September.
FHFA News Release

The FHFA announces that the final September value of the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders was 6.17 percent. This is a decrease of 0.29 percent from the August value.  Many lenders use this rate in adjusting some adjustable-rate mortgages.
FHFA News Release

October 27, 2008

The FHFA announces the formal integration of three agencies into the FHFA: the Office of Federal Housing Enterprise Oversight (OFHEO), the Federal Housing Finance Board (FHFB), and the Department of Housing and Urban Development’s government-sponsored enterprise mission team.
FHFA News Release

October 24, 2008

The Federal Reserve issues a report examining the factors that gave rise to high-poverty neighborhoods, and the challenges these communities face.
Press Release

Alpha Bank and Trust, Alpharetta, Georgia, is closed by the Georgia Department of Banking and Finance, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume the insured deposits of Alpha Bank & Trust.
Press Release

October 23, 2008

The FDIC approves an interim rule to govern its newly created TLGP.
Press Release

The FHFA releases its Monthly House Price Index (formerly called the OFHEO monthly house price index), which indicates that U.S. home prices fell 0.6 percent on a seasonally-adjusted basis from July to August. This is slightly less than the 0.8 percent fall in July. For the 12 months ending in August, U.S. prices fell 5.9 percent. The decline since the April 2007 peak is 6.5 percent.

October 22, 2008

The Federal Reserve announces that it will alter the formula used to determine the interest rate paid to depository institutions on excess balances to help foster trading in the funds market at rates closer to the target rate.
Press Release

Treasury names interim chief investment officer for TARP.

The FHFA releases its Mortgage Metrics Report for the second quarter of 2008. The report presents key performance data on 30.6 million first lien residential mortgages with outstanding balances totaling $4.5 trillion serviced on behalf of Fannie Mae and Freddie Mac for the first and second quarters of 2008.

October 21, 2008

In response to the strain experienced by short term debt markets, the Federal Reserve announces the creation of the Money Market Investor Funding Facility to support a private-sector initiative designed to provide liquidity to U.S. money market investors (including U.S. money market funds) and thus increase their ability to meet any further redemption requests and their willingness to invest in money market instruments.
Press Release

Treasury hires accounting firms to assist in the implementation of TARP as authorized under the EESA.

October 20, 2008

The Federal Reserve offers $150 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

The Federal Reserve approves final amendments to Regulation C that revise the rules for reporting price information on higher-priced mortgage loans. The changes are intended to improve the accuracy and usefulness of data reported under the Home Mortgage Disclosure Act.
Press Release

Treasury issues additional guidance on capital purchase program, HP-1222.

October 17, 2008

The federal banking and thrift regulatory agencies announce that they will allow banking organizations to recognize the effect of the tax change enacted in Section 301 of the EESA in their third quarter 2008 regulatory capital calculations. Section 301 provides tax relief to banking organizations that have suffered losses on certain holdings of Fannie Mae and Freddie Mac preferred stock by changing the character of these losses from capital to ordinary for federal income tax purposes.
Press Release

October 16, 2008

The Federal Reserve issues enhanced guidance that refines and clarifies its programs for the consolidated supervision of bank holding companies and the combined U.S. operations of foreign banking organizations in the hopes of fostering consistent Federal Reserve supervisory practices and assessments across institutions with similar activities and risks. The Federal Reserve also releases guidance clarifying certain Federal Reserve supervisory policies regarding compliance risk management programs and oversight at large banking organizations with complex compliance profiles.
Press Release

The Federal Reserve announces the adoption of an interim final rule that will allow bank holding companies to include in their Tier 1 capital without restriction the senior perpetual preferred stock issued to the Treasury Department under the capital purchase program announced by the Treasury on October 14, 2008.
Press Release

Treasury hires a legal adviser for the implementation of the EESA.

October 14, 2008

The Federal Reserve announces additional details regarding the CPFF, including that it will begin funding purchases of commercial paper on October 27, 2008.
Press Release

The Federal Reserve authorizes an increase in the size of its temporary reciprocal currency arrangement (swap line) with the Bank of Japan, so that the Bank of Japan can provide U.S. dollar funding in quantities sufficient to meet demand. 
Press Release

IRS issues Notice 2008-100, which provides specified relief from the potential limitations of IRC Sec. 382 for financial institutions whose stock is acquired by the government pursuant to Sec. 101 of the EESA. This guidance is intended to decrease the likelihood that a government investment pursuant to such provision would directly or indirectly trigger the application of the limitations of IRC Sec. 382 on the ability of the company to utilize its tax losses.

IRS issues Notice 2008-101, stating that no amount furnished to a financial institution pursuant to EESA-established TARP will be treated as federal financial assistance under IRC Code Sec. 597, which might otherwise require such amount to be included as income.

To encourage U.S. financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers, the Treasury announces the TARP capital purchase program. Under the program, the Treasury will purchase up to $250 billion of senior preferred shares on standardized terms. The program will be available to qualifying U.S. controlled banks, savings associations, and certain bank and savings and loan holding companies engaged only in financial activities that elect to participate before 5:00 pm (EDT) on November 14, 2008.

Treasury hires custodian for the implementation of the TARP authorized under the EESA.

Treasury requests public input on establishment of guaranty program for troubled assets, HP-1212. The purpose of this program is to restore liquidity and stability to the financial system, while minimizing any potential long-term negative impact on taxpayers. 

The FDIC announces the TLGP to strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior unsecured debt of banks, thrifts, and certain holding companies, and by providing full coverage of non-interest bearing deposit transaction accounts, regardless of dollar amount.
Press Release

October 13, 2008

In order to provide broad access to liquidity and funding to financial institutions, the Bank of England (BoE), the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank (SNB) jointly announce that the BoE, ECB, and SNB will conduct tenders of U.S. dollar funding at 7-day, 28-day, and 84-day maturities at fixed interest rates for full allotment. The Federal Reserve authorizes increases in the sizes of its temporary swap facilities with the BoE, the ECB, and the SNB, so that these central banks can provide U.S. dollar funding in quantities sufficient to meet demand.
Press Release

Treasury hires an investment advisor for the implementation of the TARP authorized under the EESA.

October 12, 2008

The Federal Reserve announces its approval of Wells Fargo & Company’s acquisition of Wachovia Corporation, its subsidiary banks, and its nonbanking subsidiaries.
Press Release

October 10, 2008 

The FDIC adopts an interim final rule to simplify the deposit insurance rules for accounts held at FDIC-insured institutions by mortgage servicers. Under the interim rule, coverage will be provided to the lenders/investors, as a collective group, based on the cumulative amount of the borrowers' payments of principal and interest into the account. The interim rule will also amend the deposit insurance regulations to reflect the temporary increase in the standard deposit insurance amount from $100,000 to $250,000.
Press Release

Main Street Bank, Northville, Michigan, is closed by the Michigan Office of Financial and Insurance Regulation, and the FDIC is named receiver. The FDIC approves the assumption of all the deposits of Main Street Bank, by Monroe Bank & Trust, Monroe, Michigan.
Press Release

Meridian Bank, Eldred, Illinois, is closed by the Illinois Department of Financial Professional Regulation-Division of Banking, and the FDIC is named receiver. The FDIC approves the assumption of all the deposits of Meridian Bank by National Bank, Hillsboro, Illinois.
Press Release

In response to an application by the Investment Company Institute, the SEC issues a no-action letter allowing money market funds to use "shadow pricing" temporarily for certain short-term, high-quality portfolio securities. The no-action letter allows money market funds to price, for a limited time, certain portfolio securities by reference to their amortized cost value rather than using available market quotations.

October 9, 2008

In light of the Treasury’s Senior Preferred Stock Purchase Agreement, the FHFA determines that it is prudent and in the best interests of the market to suspend capital classifications of Fannie Mae and Freddie Mac during their conservatorship. The existing statutory and FHFA-directed regulatory capital requirements will not be binding during the conservatorship. The FHFA also downgrades Fannie Mae and Freddie Mac‘s second quarter capital classification to undercapitalized.
FHFA News Release

October 8, 2008

Because of the recent intensification of the financial crisis, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, Sveriges Riksbank, and the Swiss National Bank jointly announce reductions in policy interest rates. Accordingly, the Federal Reserve decides to lower its target for the federal funds rate 50 basis points to 1-1/2 percent and approves a 50-basis-point decrease in the discount rate to 1-3/4 percent.
Press Release

The Federal Reserve, the OCC, the FDIC, and the OTS announce that the Shared National Credits Program experienced a large increase in credit volume and a significant deterioration in credit quality.
Press Release

The Federal Reserve authorizes the Federal Reserve Bank of New York to borrow up to $37.8 billion in investment-grade, fixed-income securities from certain insurance subsidiaries of AIG in return for cash collateral. This new program allows AIG to replenish liquidity used in settling transactions with counterparties returning these securities to AIG, while providing enhanced credit protection to the New York Fed and U.S. taxpayers in the form of a security interest in these securities.
Press Release

The Treasury Department announces a technical correction that permits additional money market funds to participate in Treasury's Temporary Money Market Fund Guarantee Program. Funds that have a policy of maintaining a stable net asset value or share price that is greater than $1.00 and had such policy on September 19, 2008 are now eligible to participate. The enrollment deadline for these newly eligible funds is extended to October 10, 2008. The enrollment period closes today for those funds that maintain a stable share price of $1.00 and that qualified under the program originally announced on September 29, 2008.

The FHFA sends to the Federal Register an interim final rule amending its Affordable Housing Program (AHP) regulation. The changes to the AHP regulation will help preserve homeownership for low- and moderate-income families by allowing the use of AHP subsidy in conjunction with the Federal Housing Administration’s HOPE for Homeowners Program. 
FHFA News Release 

October 7, 2008

In light of the financial support the Treasury Department provided to Fannie Mae and Freddie Mac through senior preferred stock purchase agreements, the Federal Reserve, the FDIC, the OCC, and the OTS announce that they will request public comment on proposed rules which would allow a banking organization to assign a 10 percent risk weight to claims on, and portions of claims guaranteed by, Fannie Mae and Freddie Mac.
Press Release

Given the considerable strain on the commercial paper market, the Federal Reserve announces the creation of the CPFF to help provide liquidity to term funding markets. The CPFF will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle that will purchase three-month unsecured and asset-backed commercial paper directly from eligible issuers.
Press Release

IRS issues Notice 2008-92, stating that the IRS will not assert that participation in Treasury's Temporary Guarantee Program for Money Market Funds by a money market fund whose beneficial interests are held exclusively by one or more insurance company segregated asset accounts causes any such segregated asset account to violate the diversification requirements of IRC Sec. 817(h) otherwise applicable to such account.

The FDIC adopts a restoration plan accompanied by a notice of proposed rulemaking that would increase the rates banks pay for deposit insurance, while at the same time making adjustments to the system that determines what rate a bank pays the FDIC. The proposed changes seek to improve the way the system differentiates risk among insured institutions and help ensure that the reserve ratio returns to at least 1.15 percent by the end of 2013.
Press Release

October 6, 2008

The Federal Reserve announces that it will begin to pay interest on depository institutions' required and excess reserve balances, giving it greater scope to use its lending programs to address conditions in credit markets while also maintaining the federal funds rate close to the target. Consistent with this increased scope, the Federal Reserve also announces that the sizes of both 28-day and 84-day TAF auctions will be boosted to $150 billion each.
Press Release

The Federal Reserve announces its approval of Mitsubishi UFJ Financial Group, Inc.’s acquisition of up to 24.9 percent of the voting shares of Morgan Stanley and acquisition of an indirect interest in Morgan Stanley's subsidiary bank, subsidiary savings association, and subsidiary trust company.
Press Release
Press Release

IRS issues Notice 2008-91, allowing CFCs to exclude from the definition of the term “obligation”  an obligation held by the CFC that would otherwise be an investment in U.S. property as long as the obligation is collected within 60 days from time it is incurred and the CFC did not hold U.S. obligations in the aggregate for 180 days or more during such year. This guidance expands similar guidance provided under Notice 88-108, and is intended to facilitate liquidity in the near term (it is generally available only during 2008 and 2009 tax years) by enabling companies to borrow from their CFCs without incurring taxable income that might otherwise occur.

October 3, 2008

The House of Representatives approves EESA by a vote of 263 to 171. President Bush signs the bill into law.
New York Times Article

EESA temporarily raises the basic limit on federal deposit insurance coverage from $100,000 to $250,000 per depositor.
Press Release

October 1, 2008

The Senate debates and votes on a revised version of  EESA (structured as an amendment to H.R. 1424). The amendment is approved by a 74-25 vote.
CNNMoney.com Article
GovTrack.us Article

IRS issues Notice 2008-83, stating that any deduction properly allowed to a bank after an ownership change under IRC Sec. 382 with respect to losses on loans or bad debts will not be treated as a built-in loss or deduction attributable to a period before the change date. This guidance permits such deductions to be taken without regard to IRC Sec. 382 limitations that might otherwise be applicable to such built-in deductions, a move that is intended to facilitate investments in or acquisitions of troubled institutions.

IRS issues Notice 2008-88, which expands the circumstances and time periods during which a government issuer may purchase its own tax-exempt bonds without resulting in a reissuance or retirement of such bonds. This guidance amends and supplements earlier similar guidance issued in Notice 2008-41 in response to an extension of the circumstances affecting the liquidity and stability within the short-term tax-exempt bond market. 

September 30, 2008

To help preparers, auditors, and investors address fair value measurement questions that have been cited as most urgent in the current environment, the SEC and the Financial Accounting Standards Board provide guidance on "mark-to-market" accounting rules detailed in FAS 157.
SEC Press Release

September 29, 2008

In response to continued strains in short-term funding markets, central banks announce further coordinated actions to expand significantly the capacity to provide U.S. dollar liquidity. Accordingly, the Federal Reserve:(1) increases the size of the 84-day maturity TAF auctions to $75 billion per auction, (2) announces two forward TAF auctions totaling $150 billion to be conducted in November to provide term funding over year-end, and (3) increases swap authorization limits with the Bank of Canada, Bank of England, Bank of Japan, Danmarks Nationalbank, European Central Bank, Norges Bank, Reserve Bank of Australia, Sveriges Riksbank, and Swiss National Bank to a total of $620 billion.
Press Release

The Federal Reserve announces the annual indexing of the reserve requirement exemption amount and of the low reserve tranche for 2009. It also announces the annual indexing of the nonexempt deposit cutoff level and the reduced reporting limit that will be used to determine deposit reporting, effective in 2009.
Press Release

Treasury opens its Temporary Guarantee Program for Money Market Funds, HP-1161.

The FDIC facilitates Citigroup’s acquisition of the banking operations of Wachovia Corporation. The FDIC enters into a loss sharing arrangement on a pre-identified pool of loans. Under the agreement, Citigroup Inc. will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will absorb losses beyond that. Citigroup has granted the FDIC $12 billion in preferred stock and warrants to compensate the FDIC for bearing this risk.
Press Release

The first version of the EESA (structured as an amendment to H.R.3997) is rejected by the House of Representatives by a vote of 228-205.
New York Times Article

September 26, 2008

To address the pressures in global money markets over quarter end, the Federal Reserve authorizes a $10 billion increase in its temporary swap facility with the European Central Bank and a $3 billion increase in its facility with the Swiss National Bank.
Press Release

IRS issues Rev. Proc. 2008-63, stating that where securities are transferred pursuant to a securities loan agreement satisfying the IRC Sec. 1058(b) requirements for non-recognition of gain or loss, and the borrower subsequently defaults because of bankruptcy, the subsequent prompt use by the lender of the collateral provided under the agreement to purchase identical securities will be treated in the same manner as a return of the borrowed securities (generally, a tax-free transaction).

IRS issues Notice 2008-78, which eliminates the two-year rule of IRC Sec. 382(l)(1)(B) dealing with capital contributions in the context of limitations on net operating loss carryforwards following an ownership change in favor of a more liberal facts-and-circumstances test. This guidance is intended to make it easier for troubled companies to obtain capital infusions by reducing the concern that such amounts might be disregarded in the context of a subsequent ownership change.

IRS issues Notice 2008-84, which states that the testing date for a corporation under IRC Sec. 382 will not include any date as of the close of which the United States owns a more-than-50-percent-interest in the subject corporation.  This is intended to prevent IRC Sec. 382 from applying to create a limitation on the ability of a subject corporation to utilize its existing tax losses to offset future income while the Untied States owns the requisite interest in the corporation.

OCC approves applications for JPMorgan Chase Bank to acquire Washington Mutual Bank and to merge Washington Mutual Bank into JPMorgan Chase Bank, NR 2008-114.
Press Release

In the hopes of facilitating faster deposit insurance determinations after bank closings and improving public confidence in the banking system, FDIC adopts changes to simplify the rules for determining the coverage available on revocable trust accounts. The changes eliminate the concept of qualifying beneficiaries so that coverage is based on the naming of virtually any beneficiary.
Press Release

September 25, 2008 

Washington Mutual is closed by OTS and the FDIC is named receiver. The FDIC facilitates JPMorgan Chase’s acquisition of the banking operations of Washington Mutual.
Press Release

September 24, 2008

The Federal Reserve authorizes the establishment of new of temporary reciprocal currency arrangements (swap lines) with the Reserve Bank of Australia, the Sveriges Riksbank, the Danmarks Nationalbank, and the Norges Bank to address elevated pressures in U.S. dollar short-term funding markets. These new facilities will support the provision of U.S. dollar liquidity in amounts of up to $10 billion each by the Reserve Bank of Australia and the Sveriges Riksbank and in amounts of up to $5 billion each by the Danmarks Nationalbank and the Norges Bank.
Press Release

In testimony before the Senate Committee on Banking, Housing, and Urban Affairs Chairman Bernanke explains the Federal Reserve’s decision not to bailout Lehman brothers.
Bernanke Testimony

IRS issues Rev. Proc. 2008-58, stating that the IRS will not question the position that taxpayers who accept offers to settle disputes arising from failed auctions of auction rate securities continue to own the security during the window period during which such a settlement right can be exercised, and will treat the taxpayer's amount realized from sale of auction rate security during such period to the entity offering the settlement as the full amount of cash proceeds received from that entity.  This guidance was issued in response to the failed remarketing of auction rate securities during the early part of 2008, which has led to litigation. 

The FHFA releases its first Mortgage Metrics Report. The report presents key performance data on 30.4 million first lien residential mortgages with outstanding balances totaling $4.4 trillion serviced on behalf of Fannie Mae and Freddie Mac from 2007 through the first quarter of 2008.
FHFA News Release

September 22, 2008

Due to concern about sudden and unexplained declines in the prices of securities, the SEC concluded that it is necessary to require certain institutional investment managers to report information concerning daily short sales of securities. Effective September 22, 2008, institutional investment managers who have filed or were required to file a Form 13F for the calendar quarter ended June 30, 2008 under section 13(f) of the Exchange Act and Rule 13f-1(a) will be required, starting on September 29, 2008, to report information regarding short positions to the SEC on new Form SH.
SEC Release

The Federal Reserve will offer $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

The Federal Reserve approves a policy statement on equity investments in banks and bank holding companies. The policy statement provides additional guidance on the Federal Reserve’s position on minority equity investments in banks and bank holding companies that generally do not constitute "control" for purposes of the Bank Holding Company Act.
Press Release

IRS issues Notice 2008-81, stating that the IRS will not claim payments made from Treasury's Exchange Stabilization Fund to S.E.C. Regulated Money Market Funds to enable them to maintain stable $1.00 per share asset values violate the restrictions of IRC Sec. 149(b), which generally state that federally-guaranteed bonds are not tax-exempt, and might otherwise impair the ability of such funds to pay tax-exempt dividends.

OCC approves application of Morgan Stanley Bank to convert to a national bank, NR 2008-112.
Press Release

September 21, 2008

The Federal Reserve approves the applications of Goldman Sachs and Morgan Stanley to become bank holding companies. To provide increased liquidity support to these firms as they transition to a bank holding company structure, it authorizes the Federal Reserve Bank of New York to extend credit to their U.S. broker-dealer subsidiaries. The Federal Reserve also makes these collateral arrangements available to the broker-dealer subsidiary of Merrill Lynch.
Press Release

Treasury clarifies the guaranty program for money market funds: (1) All money market mutual funds that are regulated under Rule 2a-7 of the Investment Company Act of 1940 and are publicly offered and registered with the SEC will be eligible to participate in the program; (2) Eligible funds include both taxable and tax-exempt money market funds; (3) The temporary guaranty program will be designed to provide coverage to shareholders for amounts held by them in such funds as of the close of business on September 19, 2008. 

September 19, 2008

The SEC temporarily suspends the time and volume conditions under the Exchange Act Rule 10b-18 issuer buy-back safe harbor on the rationale that issuer repurchases can represent an important source of liquidity and can provide additional flexibility and certainty to issuers that consider executing repurchases during the current market conditions.
SEC Release

The Federal Reserve announces two enhancements to its programs to provide liquidity to markets. One initiative is the creation of the Asset Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), which extends non-recourse loans at the primary credit rate to U.S. depository institutions and bank holding companies to finance their purchases of high-quality asset-backed commercial paper from money market mutual funds. Under the other initiative, the Federal Reserve plans to purchase from primary dealers federal agency discount notes (short-term debt obligations issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks).
Press Release

The Federal Reserve approves two interim final rules in connection with its initiative to provide liquidity to markets by extending loans to banking organizations to finance their purchases of high-quality asset-backed commercial paper from money market mutual funds.
Press Release

Hoping to curb further global instability and liquidity strains in the world market, the Treasury announces the Temporary Guarantee Program for Money Market Funds for the benefit of investors in United States money market funds. The Treasury, for the next year, will insure the holdings of any publicly offered eligible money market mutual fund, both retail and institutional, that pays a fee to participate in the program. The program is designed to provide support to investors in the event the net asset value of a money market fund participating in the program falls below $1 (i.e. the fund "breaks the buck"). 

OCC approves interim final rule on bank purchases of ABCP from money market mutual funds, NR 2008-110.
Press Release

Ameribank, Inc., Northfork, West Virginia, is closed by the OTS and the FDIC is named receiver. The FDIC enters into purchase and assumption agreements with Pioneer Community Bank, Inc., Iaeger, West Virginia, and The Citizens Savings Bank, Martins Ferry, Ohio to take over all of the deposits and certain assets of Ameribank, Inc.
Press Release

September 18, 2008

The Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, the Bank of Japan, and the Swiss National Bank announce coordinated measures designed to address the continued elevated pressures in U.S. dollar short-term funding markets to improve the liquidity conditions in global financial markets. Accordingly, the Federal Reserve authorizes a $180 billion expansion of its temporary reciprocal currency arrangements (swap lines).
Press Release

Concluding that there continues to exist the potential of sudden and excessive fluctuations of securities prices, the SEC issues a temporary ban on “naked” short sales of all securities of all public companies.
SEC Release
CNNMoney.com Article

September 17, 2008

The SEC clarifies that bank support of money market mutual funds generally does not result in a requirement to present the fund on-balance sheet.
SEC Press Release

IRS issues Notice 2008-79, which provides guidance on allocations, carryforwards, information reporting, and uses of the temporary increase in the private activity bond volume cap enacted as a part of the Housing Act of 2008, and on the use of qualified mortgage bonds to refinance subprime loans as permitted by the Act. 

IRS issues Notice 2008-80, which provides guidance for eligible tax-exempt bond partnerships in the form of a proposed revenue procedure, intended to permit eligible partnerships to qualify for monthly closing elections to allow partners to take into account their required inclusions on a monthly, rather than an annual, basis. This guidance is intended to provide greater administrative certainty and to promote stability in what is viewed as a major short-term sector of the tax-exempt bond market.

Treasury announces the launch of a temporary Supplementary Financing Program. The program will consist of a series of Treasury bills, which will provide cash for use in a series of Federal Reserve lending and liquidity initiatives. 

AIG CEO Robert Willumstad to resign.
Irish Finance News Article

September 16, 2008

The Federal Reserve decides to keep its target for the federal funds rate at 2 percent.
Press Release

The Federal Reserve authorizes the Federal Reserve Bank of New York to lend up to $85 billion AIG to assist AIG in meeting its obligations as they come due. This loan is meant to facilitate a process under which AIG will sell certain of its businesses in an orderly manner, with the least possible disruption to the overall economy. As one of the condition to the loan, the U.S. government receives a 79.9 percent equity interest in AIG and has the right to veto the payment of dividends to common and preferred shareholders.
Press Release

A soured investment in Lehman Brothers Holdings Inc. debt slashes two-thirds of the asset value of the Reserve Primary Fund, causing the fund to "break the buck" — leaving investors unlikely to get back all the cash they put in because the fund failed to maintain assets of at least $1 for every dollar invested. This is just the second instance of breaking the buck in the nearly four decades-long history of money funds.

The FHFA announces the appointments of new non-executive chairmen of the Boards of Directors of Fannie Mae and Freddie Mac. John A. Koskinen is to serve as the non-executive chairman of Freddie Mac.  Philip A. Laskawy is to serve as the non-executive chairman of Fannie Mae.
FHFA News Release 

September 15, 2008

The federal banking agencies begin evaluating the amendments to GAAP proposed by the Financial Accounting Standards Board (FASB). The amendments would make changes to Statement of Financial Accounting Standards No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, and FASB Interpretation No. 46(R), Consolidation of Variable Interest Entities (FIN 46(R)).
Press Release

The OCC, Federal Reserve, FDIC, and OTS request public comment on a rule proposing to permit banks, bank holding companies, and savings associations to reduce the amount of goodwill that a banking organization must deduct from tier 1 capital by the amount of any deferred tax liability associated with that goodwill.  The proposed  change would effectively reduce the amount of goodwill that a banking organization must deduct from tier 1 capital and would reflect a banking organization's maximum exposure to loss in the event that such goodwill is impaired or derecognized for financial reporting purposes.
Press Release

Bank of America agrees to buy Merrill Lynch following its reported losses of more than $50 billion in mortgage investments.
Bloomberg.com

September 14, 2008

The Federal Reserve Board announces several initiatives to provide additional support to financial markets, including enhancements to its existing liquidity facilities. The Federal Reserve: (1) broadens the collateral eligible to be pledged at the PDCF to closely match the types of collateral that can be pledged in the tri-party repo systems of the two major clearing banks; (2) expands the collateral for the TSLF to include all investment-grade debt securities; (3) announces that Schedule 2 TSLF auctions will now be conducted each week and the amounts offered under the auctions will be increased to a total of $150 billion; and (4) adopts an interim final rule that provides a temporary exception to the limitations in section 23A of the Federal Reserve Act, allowing all insured depository institutions to provide liquidity to their affiliates for assets typically funded in the tri-party repo market.
Press Release

The Federal Reserve and the Treasury refuse to bail out Lehman Brothers. The firm files for bankruptcy protection and hurtles toward liquidation after it fails to find a buyer.
New York Times Article

September 12, 2008

IRS issues Notice 2008-77, stating that the IRS will not impose penalties under WHFIT reporting rules for the 2008 calendar year, thereby allowing additional time for WHFIT trustees and middlemen to update their computer and information systems.  This guidance also provides that, pending additional guidance, certain modifications to mortgage loans need not be reported. 

September 9, 2008

The Federal Reserve offers $25 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

IRS issues Notice 2008-76, stating that the testing date for a corporation under IRC Sec. 382 shall not include any date on or after which the government acquires stock in such entity pursuant to the Housing Act of 2008. This is intended to preclude IRC Sec. 382 from applying after the Housing Act bailout to limit the ability of Fannie Mae or Freddie Mac to utilize its existing tax losses to offset future income.

September 8, 2008

The Federal Reserve offers $25 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

September 7, 2008

The Federal Reserve, the FDIC, the OCC, and the OTS announce plans to work with small institutions whose holdings in Freddie Mac and Fannie Mae are significant compared to their capital to develop capital-restoration plans.
Press Release

Treasury enters into a Senior Preferred Stock Purchase Agreement with Fannie Mae and Freddie Mac which ensures that each enterprise maintains a positive net worth. This measure adds to market stability by providing additional security to debt holders, senior and subordinated, and adds to mortgage affordability by providing additional confidence to investors in Fannie Mae and Freddie Mac’s mortgage-backed securities. It also eliminates any mandatory triggering of receivership.

Pursuant to its authority under the Housing and Economic Recovery Act of 2008, the Treasury announces the creation of the Government Sponsored Enterprise Credit Facility to ensure credit availability to Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. The lending facility will provide secured funding on an as needed basis under terms and conditions established by the Treasury Secretary to protect taxpayers.

September 5, 2008 

Silver State Bank (SSB), Henderson, Nevada is closed by the Nevada Financial Institutions Division, and the FDIC is named Receiver. The FDIC enters into a Purchase and Assumption Agreement with Nevada State Bank, Las Vegas, Nevada, to assume the Insured Deposits of SSB.
Press Release

September 4, 2008 

The FDIC issues a report on ways mortgage lenders can responsibly and profitably expand the availability of home loans to low- and moderate-income (LMI) borrowers and still make a profit. The report says that basic, traditionally underwritten, 30-year fixed-rate mortgages are the most suitable home loan for most LMI borrowers.
Press Release

The FHFA transmits to the Federal Register a Notice of “Establishment of a New Independent Agency.” This provides formal public notice of the existence of the Agency, its purpose and the chapter of the Code of Federal Regulations (CFR) that it will employ for public dissemination of regulations, guidances and other publications. The new chapter of the Code is Title 12 CFR Chapter XII.
FHFA News Release

August 29, 2008

Integrity Bank, Alpharetta, Georgia is closed by the Georgia Department of Banking and Finance, and the FDIC is named receiver. The FDIC Board of Directors approves the assumption of all the deposits of Integrity Bank by Regions Bank, Birmingham, Alabama.
Press Release

August 25, 2008

The Federal Reserve offers $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

August 22, 2008 

The Columbian Bank and Trust Company (CBT), Topeka, Kansas, is closed by the Kansas Bank Commissioner, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with Citizens Bank and Trust, Chillicothe, Missouri, to assume the insured deposits of CBT.
Press Release

August 20, 2008

The FDIC announces that IndyMac Federal Bank, FSB will implement a new program to systematically modify troubled mortgages. The program is designed to achieve affordable and sustainable mortgage payments for borrowers and increase the value of distressed mortgages by rehabilitating them into performing loans.
Press Release

August 12, 2008

The Federal Reserve offers $50 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

August 11, 2008

The Federal Reserve offers $25 billion in 84-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

August 8, 2008

IRS issues Rev. Proc. 2008-51, stating that the IRS will not regard specific debt instruments as AHYDO for purposes of IRC Sec. 163. This guidance is intended to provide certainty regarding the covered tax consequences where, after obtaining financing commitments from lenders and due to worsening market conditions, the issue price of the debt is less than the amount of money advanced to the borrower.

August 5, 2008

The Federal Reserve decides to keep its target for the federal funds rate at 2 percent.
Press Release

The Federal Reserve publishes its annual adjustment of the dollar amount of fees that triggers additional disclosure requirements under the Truth in Lending Act for home mortgage loans that bear rates or fees above a certain amount.
Press Release

August 1, 2008 

First Priority Bank, Bradenton, Florida, is closed by the Commissioner of the Florida Office of Financial Regulation, and the FDIC is named receiver. The FDIC enters into a purchase and assumption agreement with SunTrust Bank, Atlanta, Georgia, to assume the insured deposits of First Priority.
Press Release

July 30, 2008

To enhance the effectiveness of its existing liquidity facilities, the Federal Reserve: (1) extends the PDCF and the TSLF through January 30, 2009; (2) introduces auctions of options on $50 billion of draws on the TSLF; (3) introduces 84-day TAF loans as a complement to 28-day TAF loans; and (4) increases the Federal Reserve's swap line with the European Central Bank to $55 billion from $50 billion.
Press Release

Hoping to boost the struggling housing market, President Bush signs into law the Housing and Economic Recovery Act of 2008 (HERA).  Among other things, HERA: 1) authorizes the FHA to insure up to $300 billion in new 30-year fixed-rate mortgages through the Hope for Homeowners program; 2) creates a new agency, the Federal Housing Finance Agency (FHFA) to oversee Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks; 3) permanently increases the cap on the size of mortgages guaranteed by Fannie and Freddie; 4) establishes a tax refund for first-time home buyers; 5) eliminates a program that has allowed sellers to provide down payment assistance for Federal Housing Authority loans; 6) grants $4 billion to states to buy up and rehabilitate foreclosed properties; 7) authorizes the Treasury to temporarily offer Fannie and Freddie an unlimited line of credit and buy stock in the companies; and 8) amends the Truth in Lending Act to revise the disclosure requirements for mortgage loans.
CNN.money.com article

July 28, 2008

The Federal Reserve offers $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

Treasury releases Best Practices for Residential Covered Bonds to encourage additional sources of mortgage financing and to help strengthen financial institutions.

July 25, 2008

First National Bank of Nevada, Reno and First Heritage Bank, N.A., Newport Beach, California are closed by the OCC and the FDIC is named receiver. The FDIC enters into purchase and assumption agreements with Mutual of Omaha Bank to take over all of the deposits and certain assets of the First National Bank and First Heritage Bank.
Press Release

July 17, 2008

The FDIC issues an interim rule establishing the FDIC's practices for determining deposit and other liability account balances at a failed insured depository institution. Under the rule, the FDIC will also require institutions to prominently disclose to sweep account customers whether the swept funds are deposits and the status of the swept funds if the institution were to fail.

July 15, 2008

The federal banking and thrift agencies issue final guidance outlining the supervisory review process for banking organizations implementing the new advanced capital adequacy framework known as Basel II. The final guidance is aimed at helping banking organizations meet certain qualification requirements in the advanced approaches rule.
Press Release

The FDIC approves a final covered bond policy statement that will facilitate the development of the U.S. covered bond market by providing bondholders expedited access to collateral if the FDIC declines to continue the covered bonds after a bank failure.
Press Release

The SEC issues an emergency order requiring anyone effecting a short sale in the securities of Fannie Mae, Freddie Mac and primary dealers at commercial and investment banks, to borrow or arrange to borrow or otherwise have the security in its inventory prior to the short sale and deliver them at settlement.
SEC Press Release 

July 14, 2008

The Federal Reserve approves a final rule for home mortgage loans to better protect consumers and facilitate responsible lending. The rule prohibits unfair, abusive or deceptive home mortgage lending practices and restricts certain other mortgage practices. It also establishes advertising standards and requires certain mortgage disclosures to be given to consumers earlier in the transaction.
Press Release

Federal Reserve offers $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

July 13, 2008

The Federal Reserve grants the Federal Reserve Bank of New York the authority to lend to Fannie Mae and Freddie Mac to help ensure the ability of Fannie Mae and Freddie Mac to promote the availability of home mortgage credit.
Press Release

In connection with the takeover of Fannie Mae and Freddie Mac, Treasury Secretary Paulson announces a plan affecting Government Sponsored Entity (GSE) debt: a temporary increase in the line of credit the GSEs have with the Treasury; temporary authority for the Treasury to purchase equity in either of the two GSEs if needed; strengthening of the GSE regulatory reform legislation by giving the Federal Reserve a consultative role in the new GSE regulator's process for setting capital requirements and other prudential standards.

July 11, 2008

OTS closes IndyMac Bank. The FDIC is named conservator.
Press Release

July 8, 2008

The federal banking and thrift agencies issue an interagency statement outlining the qualification process for banking organizations implementing the new advanced capital adequacy framework known as Basel II. The process consists of three major stages: adoption of an implementation plan; completion of a satisfactory parallel run; and advancement through three transitional periods.
Press Release

IRS issues Rev. Proc. 2008-47, stating that the IRS will not challenge REMIC or investment trust status, or assert prohibited transaction penalties, as a result of certain “fast track” modifications to specified residential mortgage loans held by such entities.  This allows for the implementation of the framework released on the same day by the American Securitization Forum which creates a fast track procedure for modifying first-tier subprime residential ARM loans.

The SEC releases findings from its extensive 10-month examination of Fitch Ratings Ltd., Moody's Investor Services Inc., and Standard & Poor's Ratings Services. The examination uncovered significant weaknesses in ratings practices and the need for remedial action by the firms to provide meaningful ratings and the necessary levels of disclosure to investors. The agency's staff conducted the examination to evaluate whether the credit rating agencies are adhering to their published methodologies for determining ratings and managing conflicts of interest.
SEC Press Release 

The CFTC requests public comment on a petition submitted jointly by the Chicago Mercantile Exchange Inc. (CME) and the Board of Trade of the City of Chicago, Inc. (CBOT) in connection with certain over-the-counter (OTC) contracts to be listed for clearing-only on the CBOT and cleared through CME. CME is the derivatives clearing organization for the CBOT.  CME and CBOT are requesting that the Commission issue an order under Section 4(c) of the Commodity Exchange Act (CEA) that would permit qualified participants who enter into OTC corn basis swaps and OTC calendar swaps for corn, wheat, and soybeans to submit those contracts to CME for clearing. CME and CBOT also are requesting that the Commission issue an order under Section 4d of the CEA that would permit CME and clearing member futures commission merchants to commingle customer funds used to margin, secure, or guarantee these contracts with other funds held in segregated accounts.

July 7, 2008

SEC Chairman Christopher Cox and Federal Reserve Chairman Ben Bernanke sign a Memorandum of Understanding (MOU) between the two agencies that increases information sharing and cooperation. Under the MOU, the SEC and the Federal Reserve will share information and cooperate in areas including anti-money laundering, bank brokerage activities under the Gramm-Leach-Bliley Act, clearance and settlement in the banking and securities industries, and the regulation of transfer agents.
Federal Reserve Press Release
SEC Press Release

July 1, 2008

Seeking to curb the practices that contributed to recent turmoil in the credit markets, the SEC issues the third proposed rule amendment intended to reduce undue reliance in the Commission’s rules on nationally recognized statistical rating organizations (NRSRO) ratings.
Press Release
SEC Release No. 34-58070
SEC Release No. 33-8940
SEC Release No. ic-28327

June 30, 2008

The Federal Reserve offers $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

June 26, 2008

The Federal Reserve proposes a rule that would implement certain of the less-complex approaches for calculating risk-based capital requirements that are included in the international Basel II capital accord. The proposal, known as the standardized framework, would be available for banks, bank holding companies, and savings associations not subject to the advanced approaches of Basel II. The standardized framework seeks to more closely align regulatory capital requirements with institutions' risk and encourage improvements in their risk-management practices.
Press Release

The FDIC votes to issue the interagency notice of proposed rulemaking (NPR) on the Basel II standardized framework for public comment.
Press Release

The SEC announces that it has proposed revised oil and gas company reporting requirements to help provide investors with a more accurate and useful picture of the oil and gas reserves that a company holds. The proposed rule changes incorporate improved technologies and alternative extraction methods, and enable oil and gas companies to provide investors with additional information about their reserves.
SEC Press Release

June 25, 2008

The Federal Reserve decides to keep its target for the federal funds rate at 2 percent.
Press Release

In light of the increasing globalization of banking and the concomitant expansion of major banks' cross-border operations, the FDIC Chairman Sheila C. Bair and Sir Callum McCarthy, Chairman of the United Kingdom Financial Services Authority sign a memorandum of understanding. The memorandum will provide formal information-sharing and contingency planning arrangements in connection with cross-border banking activities in the United States and the United Kingdom.
Press Release

June 16, 2008

The Federal Reserve offers $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

June 13, 2008

IRS issues Notice 2008-55, as subsequently revised on June 25, 2008, allowing for the addition of liquidity facilities to auction rate preferred stock. The Service will not challenge the equity characterization of auction rate preferred stock as a result of adding a liquidity facility as long as certain prescribed conditions are met. The Notice was intended to provide an increased market for auction rate preferred stock in light of recent significant auction failures in the market.

June 12, 2008

OCC's 14th annual Survey of Credit Underwriting Practices finds that bank underwriting standards have tightened after four consecutive years of eased underwriting standards, NR 2008-66.
OCC Release

June 11, 2008

The SEC proposes comprehensive reforms to bring transparency to Credit Rating Process. The first of three proposed rule amendments would impose additional requirements on nationally recognized statistical rating organizations in the light of the role they played in determining credit ratings for securities collateralized by or linked to subprime residential mortgages. The second proposed rule would be designed to improve investor understanding of the risk characteristics of structured finance products.
SEC Release

June 5, 2008

The Federal Reserve announces its approval of Bank of America’s acquisition of Countrywide Financial Corporation and thereby its indirect acquisition of Countrywide Bank, FSB, Alexandria, Virginia, and certain other nonbanking subsidiaries of Countrywide.
Press Release

June 2, 2008

The Federal Reserve offers $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

May 30, 2008

First Integrity, National Association, Staples, Minnesota is closed by the OCC, and the FDIC is named receiver. The FDIC approves the assumption of all the deposits of First Integrity by First International Bank and Trust, Watford City, North Dakota.
Press Release

May 22, 2008

The Federal Reserve, FDIC, OCC, OTS, and NCUA issue final illustrations for helping consumers understand certain hybrid adjustable-rate mortgage (ARM) products. The illustrations are intended to help institutions implement the Statement on Subprime Mortgage Lending, which recommended that institutions provide clear, balanced, and timely information to consumers about the relative benefits and risks of hybrid ARM products.
Press Release

May 19, 2008

The Federal Reserve offers $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

May 16, 2008

IRS issues Rev. Proc. 2008-28, allowing certain mortgage loan modifications undertaken as part of foreclosure prevention programs by REMICS or investment trusts that might otherwise jeopardize the qualification of such entities. The Service will not challenge such a securitization vehicle’s qualification as a REMIC or trust as a result of such modifications, and will not contend that certain modifications made to the mortgages are prohibited transactions under IRC Sec. 860F, as long as the property and loans in question meet specified requirements.

May 12, 2008

IRS issues Rev. Proc. 2008-26, creating a safe harbor for determining whether a security is a “readily marketable security” under IRC Sec. 956(c)(2)(j), which creates an exception from potential income inclusion under IRC Sec. 956 for certain obligations related to security repurchase agreements covering the transfer of (or collateralized by) readily marketable securities. For calendar years 2007 and 2008, the Service will not challenge whether a security is readily marketable if it is of a type that was readily marketable at any time within the three years ending on May 12, 2008. This Rev. Proc. addresses uncertainty as to whether certain securities are readily marketable created by market conditions and liquidity constraints. 

May 9, 2008

ANB Financial, National Association, Bentonville, Arkansas, is closed by the OCC, and the FDIC is named receiver. The FDIC's Board of Directors approves the assumption of the insured deposits of ANB Financial by Pulaski Bank and Trust Company, Little Rock, Arkansas.
Press Release

May 8, 2008

The Federal Reserve and the Federal Trade Commission announce proposed regulations that generally would require a creditor to provide a consumer with a risk-based pricing notice when, based in whole or in part on the consumer's credit report, the creditor offers or provides credit to the consumer on terms less favorable than the terms it offers or provides to other consumers.
Press Release

May 5, 2008

The Federal Reserve offers $75 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

May 2, 2008

In view of the persistent liquidity pressures in some term funding markets, the European Central Bank (ECB), the Federal Reserve, and the Swiss National Bank (SNB) announce an expansion of their liquidity measures. Accordingly, the Federal Reserve: (1) increases the amounts auctioned to eligible depository institutions under its TAF to $75 billion; (2) authorizes further increases in its existing temporary reciprocal currency arrangements with the ECB and the SNB; and (3) authorizes an expansion of the collateral that can be pledged in the Federal Reserve's Schedule 2 TSLF auctions to include AAA/Aaa-rated asset-backed securities.
Press Release

Following its 2007 proposal to improve the credit card disclosures under the Truth in Lending Act, the Federal Reserve announces proposed rules to prohibit unfair practices regarding credit cards and overdraft services. The proposed rules would, among other provisions, protect consumers from unexpected increases in the rate charged on pre-existing credit card balances.
Press Release

April 30, 2008

Because recent information indicates that economic activity remains weak, the Federal Reserve lowers its target for the federal funds rate 25 basis points to 2 percent and approves a 25-basis-point decrease in the discount rate to 2-1/4 percent.
Press Release

April 21, 2008

The Federal Reserve offers $50 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

April 11, 2008

In response to a request from the Financial Stability Forum, the Senior Supervisors Group issues a report that reviews the disclosure practices of financial services firms concerning their exposures to certain financial instruments that the marketplace now considers to be high-risk or to involve more risk than previously thought, including collateralized debt obligations, residential mortgage-backed securities, commercial mortgage-backed securities, other special purpose entities, and leveraged finance. The Senior Supervisors Group is composed of senior financial supervisors from five countries: the United States, France Germany, Switzerland and the United Kingdom.
Press Release

April 7, 2008

The Federal Reserve offers $50 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

April 1, 2008

The Federal Reserve announces its approval of the proposal by JPMorgan Chase & to acquire Bear Stearns Bank & Trust, Princeton, New Jersey, a subsidiary of Bear Stearns Companies, Inc.
Press Release

March 30, 2008

The Treasury Department publishes its Blueprint for Regulatory Reform.

March 24, 2008

The Federal Reserve offers $50 billion in 28-day credit through its TAF to depository institutions eligible to borrow under the primary credit program.
Press Release

March 18, 2008

Because recent information indicates that the outlook for economic activity has weakened further, the Federal Reserve decides to lower its target for the federal funds rate 75 basis points to 2-1/4 percent and approves a 75-basis-point decrease in the discount rate to 2-1/2 percent.
Press Release

March 16, 2008

The Federal Reserve announces two initiatives designed to bolster market liquidity and promote orderly market functioning. First, it authorizes the Federal Reserve Bank of New York to create a lending facility to improve the ability of primary dealers to provide financing to participants in securitization markets. Second, it approves the New York bank’s request to decrease the primary credit rate. The Federal Reserve also approves an increase in the maximum maturity of primary credit loans to 90 days.
Press Release

In connection with the proposed JP Morgan Chase/Bear Stearns acquisition and given the unusual and exigent circumstances, the Federal Reserve authorizes the New York Reserve Bank to make a nonrecourse loan of up to $30 billion that would be fully collateralized by a pool of Bear Stearns assets.
Minutes of the Board of Governors

March 14, 2008

Due to a grave liquidity crisis, the Federal Reserve authorizes the Federal Reserve Bank of New York to extend credit to JPMorgan Chase & Co. in order to provide financing on a nonrecourse basis to The Bear Stearns Companies Inc. and possibly to other primary securities dealers.
CRS Report for Congress
Minutes of the Board of Governors
Press Release

Given the likelihood of more bank failures and the current challenges facing the bank industry, the FDIC votes to keep the assessment rates charged to insured banks and savings associations for the Deposit Insurance Fund (DIF) unchanged for 2008.
Press Release