On January 22, Neil F. Borofsky, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), indicated in a letter to Congress that his office would soon send a request to all entities that received Troubled Asset Relief Program (TARP) funds asking them to (1) account for their use of TARP funds, and (2) describe their efforts to comply with the TARP restrictions on executive compensation. Click here to view a copy of the letter.

TARP recipients will have only 30 days to respond to the request. The data collected in this effort will be used to plan for full-scale audits to ensure that TARP recipients are complying with all of the conditions for receipt of TARP funds.

Given the short timeframe for responding to the soon-to-be-released data request from the SIGTARP, institutions that have received or that expect to receive TARP funds should take steps now to develop a response regarding their use of TARP funds and to assess their compliance with the TARP executive compensation restrictions. The attorneys of Ballard's Economic Stabilization and Recovery Initiative (ESRI) have been closely following TARP developments and working with our clients to assess and help them comply with TARP requirements.

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

Dominic J. De Simone, Practice Leader, Commercial Real Estate Recovery

Joseph A. Fanone, Public Finance Department

Thomas A. Hauser, Business and Finance Department

Alan S. Kaplinsky, Banking and Consumer Financial Services

Justin P. Klein, Business and Finance Department

Vincent J. Marriott III, Bankruptcy, Reorganization and Capital Recovery Group

Brian M. Pinheiro, Employee Benefits and Executive Compensation Group

Prior EESA Alerts

January 16, 2009
Treasury Department Issues Term Sheet and Announces February 13, 2009 Deadline for Subchapter S Corporations to Participate in the Capital Purchase Program

January 6, 2009
Federal Reserve Announces Additional Details for its Term Asset-Backed Securities Loan Facility (TALF)

December 12, 2008
Treasury Department Issues Closing Documents for Private Financial Institutions to Participate in the Capital Purchase Program

December 1, 2008
SEC Staff Issues Sample Guidance to CPP Participants Filing Proxy Statements

November 26, 2008
Federal Reserve and Treasury Announce Two New Programs To Boost Credit Availability

November 18, 2008
Treasury Department Issues Term Sheet and Announces December 8, 2008 Deadline for Private Financial Institutions to Participate in the Capital Purchase Program

November 14, 2008
Kashkari Details Future TARP Deployment Strategy

November 12, 2008
Treasury Secretary Details TARP Strategy 

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

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

October 23, 2008
Kashkari Testifies Before Senate Banking Committee

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

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

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

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

October 6, 2008
Emergency Economic Stabilization Act of 2008


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