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Name: Frank Curtin |
| City: Grapevine |
| State: TX |
| Country: US |
| Company: The Smart Guides LLC |
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Creates a $700 billion program to purchase troubled assets. Treasury gets the first $250 billion immediately and access to another $100 billion if Treasury certifies a need. It gets the final $350 billion after giving Congress 15 days notice of its intent to tap the funds. Congress can reject the draw if it acts within the 15 days. (Sec. 115) Program is authorized for one year, though Treasury may extend it to two years with a written notification to Congress. (Sec. 120) Open to financial institutions established and regulated in the United States that have significant operations in the United States. It excludes any bank owned by a foreign state-run bank or a foreign central bank. (Sec. 3) Program limited to troubled assets, which are residential and commercial mortgages and related securities as well as other financial instruments that Treasury and the Federal Reserve believe it needs to buy to ensure stability. (Sec. 3)
Effective Date: Effective immediately, but Treasury will likely need four weeks to navigate the government contracting laws in order to higher asset managers and additional Treasury employees. In the interim, the Treasury could use the FDIC as an asset manager if it needs to intervene quickly to restore stability or prevent the failure of a large financial institution. We expect Treasury to provide more guidance in the coming days.