Dodd-Frank News Center

Tarullo speaks at financial stability conference in Washington

This story appeared in Bank Digest.

Federal Reserve Board Governor Daniel K. Tarullo spoke at the Federal Reserve Bank of Cleveland and Office of Financial Research 2016 Financial Stability Conference in Washington, D.C., on Dec. 2, 2016. The subject of his prepared remarks was "Financial Regulation Since the Crisis." Tarullo discussed the crisis and its aftermath and reviewed what had been accomplished since then, including the regulatory reform program. He then discussed "how to approach the work that remains--including both tackling continuing vulnerabilities to financial stability and rationalizing the measures that have already been taken."

Geithner Comments on the Financial Stability Plan, One Year Later

This story appeared in Bank Digest.

“It was one year ago today that the Obama Administration outlined a Financial Stability Plan to address the four problems at the heart of the financial crisis: frozen credit markets, weakened bank capital, a backlog of troubled mortgage assets on bank balance sheets, and falling home prices,” stated Treasury Secretary Tim Geithner, commenting on the Financial Stability Plan. According to Geithner, the plan “worked to restore economic growth and financial stability,” however, he asserted that, although the “financial system is healing,” it is still damaged and “we have a lot of repair work still ahead.”

Financial Stability Reform Bill Clears House Panel

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter.

The House Financial Services Committee voted 31 to 27 December 2 in favor of a broad legislative package that targets systemic risk by allowing a new council of regulators to break up large, failing financial firms that are considered a risk to the economy. The bill also seeks to put an end to taxpayer bailouts of troubled institutions.

House Financial Services Committee Chairman Rep. Barney Frank, D-Mass., said he expects H.R. 3996, the Financial Stability Improvement Act, to move to the House floor next week for three days of debate, followed by a vote.

Money Market Funds Guarantee Program Expires

This story appeared in Bank Digest.

The Guarantee Program for Money Market Funds expired on Sept. 18, 2009. The program was designed by the Treasury to stabilize markets after a large money market fund’s announcement that its net asset value had fallen below $1 per share (“broke the buck”) in the wake of the failure of Lehman Brothers in September of 2008. The program was initially established for a three-month period that could be extended up through Sept. 18, 2009. Treasury Secretary Tim Geithner noted, “The Guarantee Program for Money Market Funds served its purpose of adding stability to the money market mutual fund industry during market disruptions last fall and ultimately delivered a healthy return to taxpayers.”

TG-293 at http://www.ustreas.gov/press/releases/tg293.htm

Status Report on Financial Stabilization Efforts Released

By Richard Roth, J.D., Editor, the CCH Federal Banking Law Reporter, CCH Bank Compliance Guideand Bank Digest.

The Treasury Department has issued a “status report“ summarizing the Obama administration's financial system stabilization efforts to date and describing planned steps toward ending the current support programs. According to the report, some of the programs already are winding down, with the Money Market Mutual Fund Guarantee Program scheduled to end on Sept. 18, 2009, and the Debt Guarantee Program component of the Temporary Liquidity Guarantee Program (TLGP) scheduled to end on Oct. 31, 2009. Market condition improvements mean that there is no plan to extend either of these programs, although an emergency facility may be put in place to allow banks to issue guaranteed debt for an additional six months.

Geithner Sees Government Winding Down Support for Financial System

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter.

Treasury Secretary Tim Geithner said the government must begin to wind down some of the extraordinary support put in place for the financial system as its strategy evolves from one of crisis response to recovery.

Speaking September 10 to the Congressional Oversight Panel (COP), the watchdog body overseeing the government’s $700 billion Troubled Asset Relief Program (TARP), Geithner said that while the U.S. financial system is in “substantially stronger” shape than it was three, six or nine months ago, it is still the case that “substantial, enormous” challenges lie ahead.

Section 105 Congressional Report Released

This story appeared in Bank Digest.

The Treasury Department has released the Section 105(a) Troubled Assets Relief Program Report to Congress for the Period June 1, 2009, to June 30, 2009.The Treasury noted that it continued to refine and implement a number of programs under the Troubled Assets Relief Program and took a number of further steps to promote financial stability.

Obama Administration Announces New Details on Making Home Affordable Program

This story appeared in Bank Digest.

The Obama administration announced two new initiatives to help responsible homeowners as part of the Making Home Affordable Program. Under the Second Lien Program, mortgage-servicing companies that participate in the loan-modification program for second liens must automatically modify the second mortgage when the first mortgage is reworked. The government will share in the cost of reducing the interest rate on second mortgages for five years. As an alternative, it will pay holders of second mortgages to extinguish that debt. The other initiative seeks to incorporate the FHA's Hope for Homeowners program into Making Home Affordable. Under the revision, when evaluating borrowers for a Home Affordable Modification, servicers will be required to determine eligibility for a Hope for Homeowners refinancing. Financial incentives are included to encourage refinances.

News Release  http://www.ustreas.gov/press/releases/tg108.htm

Second Lien Program: Fact Sheet http://www.financialstability.gov/docs/042809SecondLienFactSheet.pdf

Second Lien Program: Two Case Examples: http://www.financialstability.gov/docs/042809HousingExamples.pdf

Geithner Says Most Banks Have Adequate Capital

By Sarah Borchersen-Keto, CCH Washington News Bureau, Contributing Author, the CCH Federal Banking Law Reporter, April 21, 2009.

Treasury Secretary Timothy Geithner said April 21 that the “vast majority” of banks currently have more capital than they need to be considered well-capitalized by their regulators.

Geithner, appearing before the Congressional Oversight Panel, also said maintaining confidence in key financial institutions, particularly as they raise new capital and restructure, has to remain a central objective of financial policy.

Latest Section 105 Report Released

This story appeared in Bank Digest.

The Treasury Department has released its latest Section 105(a) Troubled Assets Relief Program Report to Congress. The report covered activities during the month of March 2009. In the report, the Treasury noted that it “continued to develop, launch, and implement a number of programs under the Troubled Assets Relief Program (TARP) and the Financial Stability Plan (FSP) pursuant to the goals of the Emergency Economic Stabilization Act of 2008 (EESA).”