Financial Markets Update

The Financial Markets Update is prepared by a multi-disciplinary group of attorneys monitoring the events that are affecting the Financial Markets. They offer comprehensive analysis and practical solutions for financial institutions, investors and businesses affected by recent events. We invite you to learn more about our Bankruptcy and Creditors' Rights, Consumer Finance and Creditors' Rights, Distressed Assets, and Financial Services Regulation Practice Groups.

For more information about the services available from Day Pitney, please contact any of the partners listed on this page.

Six IRS Notices Ease the Use of Losses Following Certain Equity Transactions
10/30/2008
The Internal Revenue Service has eased the ability of a company with built-in losses and net operating losses to utilize them following an applicable change in ownership notwithstanding the limitation that would otherwise be applicable under Section 382 of the Internal Revenue Code of 1986, as amended.

Directors of Financial Institutions Need to Review and Consider Their Risks and Exposures
10/24/2008
As is painfully evident, these are very difficult times for financial institutions.

Understanding the Initial Guidance on the Executive Compensation Rules under the Emergency Economic Stabilization Act of 2008 (EESA)
10/23/2008
The Treasury Department has issued interim guidance on the executive compensation rules enacted in the Emergency Economic Stabilization Act of 2008 (EESA), including guidance from the Internal Revenue Service (I.R.S.).

TARP Capital Purchase Program Update
10/21/2008
On October 14th, the U.S. Treasury announced a Capital Purchase Program to purchase up to $250 billion of senior preferred shares from U.S. banks, savings associations, and their holding companies. An election to participate in the Program must be made by November 14, 2008.

New Jersey Passes "Save New Jersey Homes Act of 2008" to Extend Foreclosure Protection to New Jersey Families
10/17/2008
On September 15th, Governor Corzine signed into law the "Save New Jersey Homes Act of 2008" (the "Act"). Effective immediately, the Act will substantially affect how certain mortgage lenders deal with the ongoing economic crisis created, in part, by the subprime mortgage market.

Treasury Announces Executive Compensation Rules Under the Emergency Economic Stabilization Act
10/14/2008
Overview of the executive compensation rules under the Emergency Economic Stabilization Act addressing limitation on parachute agreements, details of the Capital Purchase Program provisions, and the term sheet for senior preferred equity.

FDIC Temporary Liquidity Guarantee Program
10/14/2008
Overview of the FDIC’s Temporary Liquidity Guarantee Program which is intended to unlock inter-bank credit markets and restore rationality to credit spreads. The Program, which is voluntary, is intended to free up funding for banks to make loans to creditworthy businesses and consumers.

Energy Improvement and Extension Act of 2008
10/6/2008
Overview and full text of the Energy Improvement and Extension Act of 2008, signed by the President on Friday, October 3, 2008, which extends tax credits for renewable energy and adds categories of renewable energy eligible for tax credits. 

Emergency Economic Stabilization Act of 2008
10/3/2008
Overview and full text of the Discussion Draft Bill providing for the Troubled Assets Relief Program.

Troubled Assets Relief Program Summaries of the House and Senate Discussion Draft Bills
9/26/2008
Overview and full text of the House and Senate Discussion Draft Bills relating to the Troubled Assets Relief Program.

Senate Issues Guidelines To Treasury on Credit Legislation
9/25/2008
Overview of the principles guiding the Senate's consideration of the proposal by the Department of the Treasury to address the credit crisis. 

Federal Reserve Eases Rules on Equity Investments in Banks
9/25/2008
Overview of the Federal Reserve Board's new policy statement, issued on September 22, 2008, concerning equity investments in banks and holding companies.