New TARP Bill to Aid Small Financial Institutions
The chairman of the House Financial Services Committee has introduced a bill (pdf) reforming the program designed to shore-up the nation's ailing financial structure. It will require the Treasury to permit smaller community financial institutions to participate on the same terms as the large players that already have received funds.
The legislation offered by Chairman Barney Frank (D-Mass.) to fix the Troubled Asset Relief Program is being designed to strengthen accountability, close loopholes, increase transparency and require Treasury to take steps on foreclosure mitigation, according to a Financial Services statement.
The bill, H.R. 384, says that depository institutions that have applied but are still waiting for action on their application will not be penalized and "may receive funding on terms comparable to institutions that received funds prior" to the new bill. The language notes that few smaller community institutions have received any TARP funding to date.
By Sharon McLoone |
January 9, 2009; 3:00 PM ET
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