Secretary of the Treasury Henry M. Paulson, Jr., gave a speech today in which he provided an update on the state of the financial system and the U.S. economy, and provided details on the Treasury's strategy for continued implementation of the Troubled Asset Relief Program (TARP), including its plans for the remaining TARP funds.

In the speech, among other things, Secretary Paulson stated that the following three "critical" priorities have been identified for the deployment of the remaining TARP funds: (i) reinforcing the stability of the financial system in order to support economic recovery and growth, (ii) supporting the markets for securitizing credit outside of the banking system to increase and encourage consumer access to such credit, and (iii) exploring options to reduce the risk of foreclosures. Of equal importance was Secretary Paulson's statement that the purchase of illiquid mortgage-related assets is not the most effective way to use TARP funds and that the Treasury will continue to examine whether targeted forms of asset purchase would play a more useful role in strengthening the financial system and helping to support lending.

Click here to go to Secretary Paulson's speech.

For further information on the Emergency Economic Stabilization Act, please contact:

Dominic De Simone, Practice Leader, Commercial Real Estate Recovery
Joseph A. Fanone, Public Finance Department
Justin P. Klein, Business and Finance Department
Thomas Hauser, Business and Finance Department
Alan Kaplinsky, Consumer Financial Services
Vincent Marriott III, Bankruptcy, Reorganization and Capital Recovery Group
Brian Pinheiro, Employee Benefits and Executive Compensation Group

Prior Alerts

Treasury Department Announces Solicitation Regarding Asset Management Services in Connection with EESA Capital Purchase Program - November 7, 2008

Beware: Is There a "Trojan Horse" in the Capital Purchase Program Securities Purchase Agreement? - November 6, 2008

Kashkari Testifies Before Senate Banking Committee - October 23, 2008

Treasury, Federal Reserve, and FDIC Joint Statement Capital Purchase Program - October 14, 2008

Remarks on TARP to Institute of International Bankers - October 13, 2008

Emergency Economic Stabilization Act of 2008/TARP - October 7, 2008

Employee Benefits and Executive Compensation Issues Connected to Emergency Economic Stabilization Act of 2008 - October 6, 2008

Emergency Economic Stabilization Act of 2008 - October 6, 2008

Copyright © 2008 by Ballard Spahr LLP.
(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.

This newsletter is a periodic publication of Ballard Spahr LLP and is intended to alert the recipients to new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer concerning your situation and specific legal questions you have.