Joint Statement by Treasury, Federal Reserve, and FDIC
Harold P. Reichwald
Elizabeth Mundinger
Today, at 8:30 a.m. EDT, before the opening of the stock market, Treasury Secretary Paulson, Federal Reserve Chairman Bernanke, and FDIC Chairman Bair announced a three-pronged plan to stabilize the financial markets which includes:
(1) injecting up to $250 billion into our banks in return for preferred stock in order to ensure that banks have the capital needed to continue to lend money;
(2) temporarily guaranteeing the senior debt of FDIC-insured institutions and deposits in non-interest bearing deposit transaction accounts (accounts often used by businesses) in order to bolster public confidence in our financial institutions; and
(3) allowing the Commercial Paper Funding Facility to begin purchasing unsecured and asset-backed three-month commercial paper from eligible issuers on October 27, 2008, in order to improve the liquidity in short-term markets.
Click here for a joint statement by Treasury Secretary Henry M. Paulson, Jr, Federal Reserve Chairman Ben Bernanke and FDIC Chairman Sheila C. Bair.
back to top
For additional information on this issue, contact:
Harold P. Reichwald Mr. Reichwald is a highly experienced banking and finance attorney whose career encompasses domestic and international matters for banks and specialty finance institutions. His experience comprises a broad range of matters including: governance matters, sophisticated financial transactions such as asset securitization, LBOs, project finance, corporate lending and restructuring; representation of a variety of domestic and foreign financial institutions before the FDIC, Comptroller of the Currency, the Federal Reserve Board and other bank regulatory agencies in connection with new product development, chartering new banks and branches, issues arising out of the bank examination process and enforcement actions demanded by regulatory authorities.
Elizabeth Mundinger Ms. Mundinger’s practice focuses on the development and implementation of legislative and regulatory strategy for businesses, corporations, state and local governments, and other public associations.