The U.S. Congress today completed legislative action on the Emergency Economic Stabilization Act of 2008. The Act, which includes the Troubled Assets Relief Program, or “TARP”, is designed to address the economic crisis currently crippling credit markets. The President is expected to sign the measure immediately.
The final version of the Act has few changes from the version rejected by the U.S. House of Representatives earlier this week. The most significant changes increase the basic federal deposit insurance limit from $100,000 to $250,000 on a temporary basis and authorize the FDIC to borrow from the U.S. Treasury as necessary to cover the additional insured amounts. The Act was passed as part of a larger legislative package.
Attached is an updated version of our memorandum summarizing key issues under the Act of interest to financial institutions and other market participants.
