NEWS UPDATE: Day Pitney LLP Updated Commentary Available on Federal "Economic Recovery and Corporate Accountability Act of 2008"and Republican "Economic Rescue Principles"
Day Pitney's Distressed Assets Group team are available for media
interviews to discuss implications of proposed House and Senate
legislative updates this weekend.
NEW YORK--(Business Wire)--
Congress is currently considering updated legislation, the
"Economic Recovery and Corporate Accountability Act of 2008" (TARP) to
address the credit crisis with a number of markedly different
additions to the recommendations circulated earlier this week,
observes a team of Day Pitney lawyers including Frank E. Lawatsch Jr.
(New York) of the Distressed Assets Practice Group and others from its
Washington DC and Boston practices.
Also in play and announced today were additional Republican
"Economic Rescue Principles" issued from Senator John McCain (R-AZ)
and fellow Congressional Republicans, who are now negotiating the
current draft of the bill with their own proposals.
"I think that the original version proposed by U.S. Treasury
Secretary Henry Paulson had the potential to work and build confidence
in the market,"said Lawatsch. "Although it may have needed additional
revisions and even supplementation with a capital injection process
that may mimic the 30s, it could have worked. The newest version seems
to be loaded with additions that are beside the intent of the
legislation package."
The new draft includes provisions for a systematic homeowner
assistance program, including modification of loans secured by
residences and availability of foreclosed properties to states and
localities.
The legislation also sets certain criteria for standards to be set
by the Secretary for executive compensation for all financial
Institutions seeking to sell assets through TARP, including limits on
incentive compensation. The legislation also recommends the setting of
additional standards regarding corporate governance for Financial
Institutions, in which the Sectary makes a direct purchase from an
individual Financial Institution, including shareholder voting rights
for directors of such Financial institutions and limits on severance
compensation.
Lawatsch stated, "The legislation under review is supposed to
unclog the arteries of commerce, but this latest iteration of the
legislation may not accomplish this goal."
Full summaries of the latest updates to the House and Senate
Discussion Draft Bills relating to the Troubled Assets Relief Program
are available on the firm's website at http://www.daypitney.com in the
newsroom. Updates will be posted to the Day Pitney site as the
legislation progresses.
About Day Pitney LLP
Day Pitney LLP, formed by the January 1, 2007 merger of Day, Berry
& Howard LLP and Pitney Hardin LLP, is a full-service law firm with
approximately 400 attorneys operating in offices in New York, New
Jersey, Connecticut, Boston, and Washington, D.C. The firm offers
clients strong corporate and litigation practices, with experience on
behalf of large national and international corporations as well as
emerging and middle market companies and individuals. Day Pitney's
practice areas include Energy and Utility Law, White Collar Defense
and Internal Investigation, Bankruptcy and Creditors' Rights and
Employee Benefits and Executive Compensation. www.daypitney.com.
Day Pitney LLP
Cindy Morgan-Olson, 646-408-5896 (After hours
& weekend cell)
cmorganolson@daypitney.com
Copyright Business Wire 2008
