New Recovery Laws: TARP Covers Exec Compensation

Law360, New York (October 7, 2008, 12:00 AM EDT) -- On Oct. 3, 2008, the Emergency Economic Stabilization Act of 2008 (“EESA”) was signed into law. EESA generally provides the U.S. Department of the Treasury with sweeping authority to purchase up to $700 billion of unsound financial assets held by banks and other financial institutions that played a part in disrupting the global credit and other financial markets.

Under the Troubled Asset Recovery Program (the “TARP”) created by EESA, Treasury is authorized to buy certain troubled mortgage-related instruments from affected institutions at the lowest possible price...
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