TARP Update: Vote on H.R. 384 Anticipated on House Floor Early Afternoon, Amendments Include Corporate Governance (Exec Comp, Outsourcing) Issues; Auction for Troubled Assets
The "TARP Reform and Accountability Act" (H.R. 384) will be voted on the House floor between 1:00 p.m. and 4:00 p.m., on Thursday, January 15, 2009. We wanted to be sure to brief you on the 11 amendments (including Frank Managers Amendment) to the bill that the Rules Committee decided were in order for voting.
Highlights of the amendments that impact corporate governance issues include:
Clarification that the Secretary may apply new executive compensation restrictions retroactively to institutions that have already received TARP assistance. (Manager's Amendment)
Prohibition on TARP fund recipients from outsourcing new customer service or call center jobs to foreign companies. (Rep. Myrick amendment).
Striking provision requiring divestiture of private passenger aircraft and leases.(Manager's Amendment)
Several of the amendments bolster reporting requirements for TARP recipient companies, including:
Requirement for Treasury to immediately obtain information from recipients of TARP funds and their precise use of funds allocated prior to January 1, 2009, and require the Treasury to conduct an analysis of the use of those funds within 30 days of enactment. (Rep. Hinchey amendment)
In addition, several amendments relate to requirements for Treasury to facilitate auctions of troubled assets, including:
Requirement that the Secretary facilitate auctions of troubled assets by institutions to third-party purchasers. (Manager's Amendment)
Requirement that, provided TARP funds are not used for their purchase, the Secretary shall facilitate an auction of troubled assets by third party purchases and, if such auction does not take place within 3 months from enactment, the Secretary must report to Congress on the mechanism the Secretary deems best to use to value and liquidate such assets. (Rep. Holt amendment).
Written by Kirsten Wegner
Floor Schedule -- Thursday, January 15, 2009
House Meets at 10:00 a.m.: Legislative Business
Five "One Minutes" Per Side
Last Vote Predicted at 3:00 – 4:00 p.m.