Economic Recovery Resource Center

Treasury Issues Guidelines for Communications Regarding Troubled Asset Relief Program

akingump — Thu, 24 Sep 2009 14:09:41 +0000

On September 10, 2009, the Department of the Treasury issued guidance regarding communications with outside persons regarding Emergency Economic Stabilization Act funds (EESA) and Recovery Act funds. EESA is the implementing statute for the Troubled Asset Relief Program (TARP). The new guidance closely follows guidance issued by the Office of Management and Budget (OMB) on July 24, 2009, (see previous client alert here) and seeks to preserve consistency between Treasury guidance and OMB guidance.

The new guidance clarifies that communications between federal agency officials and outside persons, including federally registered lobbyists, concerning general logistical questions about Recovery Act funding or implementation are unrestricted. That is, requests for a meeting, inquiries concerning the status of an action, inquiries concerning the deadlines or logistics of Recovery Act funding opportunities or other similar administrative requests that do not involve advocacy concerning Recovery Act policy or a particular project or application for funding under the Recovery Act are not subject to restriction and need not be publicly disclosed.

Click here to read the full alert.

New York Fed to Consider Limiting TALF Loans Secured by CMBS

akingump — Fri, 21 Aug 2009 16:16:21 +0000

On August 18, 2009, the Federal Reserve Bank of New York (New York Fed) announced that it may limit the volume of Term Asset-Backed Securities Loan Facility (TALF) loans secured by legacy commercial mortgage-backed securities (CMBS), and that it is considering whether to allocate such volume via an auction or another procedure.

Click here to read the full alert.

NTIA and RUS Procedures, Conditions and Criteria for Round One of Recovery Act Broadband Funding

akingump — Fri, 31 Jul 2009 13:33:16 +0000

The American Recovery and Reinvestment Act of 2009 (”Recovery Act”) included $7.2 billion of new spending on broadband infrastructure deployment and related broadband matters. The National Telecommunications and Information Administration (NTIA) and the Rural Utility Service (RUS), a division of the U.S. Department of Agriculture, recently released a joint Notice of Funds Available (NOFA) outlining the application procedures, conditions applicable to the funding, and application evaluation criteria for the first round of Recovery Act broadband funding. Approximately $4 billion of funding is available under this NOFA. Remaining Recovery Act broadband funding is expected to be awarded in two subsequent funding rounds pursuant to separate notices. NTIA and RUS reserve the right to modify the funding rules for such subsequent funding rounds.

Click here to read the full alert.

OMB Issues Revised Guidance Concerning Restrictions on Lobbying Communications for Recovery Act Funds

akingump — Wed, 29 Jul 2009 19:09:10 +0000

In March 2009, President Obama issued a memorandum outlining new restrictions on lobbyists concerning the American Recovery and Reinvestment Act of 2009 (”Recovery Act”). (Please click here to read our alert on the March 20 memorandum.) Subsequently, the White House announced that the restrictions would be revised and additional guidance would be forthcoming from OMB. (Please click here to read our alert on the May 29 announcement). On July 24, 2009, OMB issued revised guidance.

While the Administration’s emphasis continues to be on increased disclosure of lobbyist communications regarding Recovery Act issues, the latest guidance clarifies that the prohibition on oral communications only applies during a specific time period and applies to all communications, not just those made by federally registered lobbyists. As has been the case since the May 2009 announcement by the White House, lobbyists may attend and participate in phone calls and meetings with federal officials so long as the communications are not within the covered period.

Click here to read the full alert.

FDIC Proposes Standards Applicable to Buyers of Failed Thrifts

Max Schwartz — Wed, 08 Jul 2009 17:06:41 +0000

In an effort to provide guidance to private investors interested in acquiring or investing in failed depository institutions in receivership, on July 1, 2009, the Federal Deposit Insurance Corporation (FDIC) proposed eligibility standards for investors who are not already owners of a bank or thrift holding company. As defined in the FDIC’s proposed policy statement, “Investors” means (a) private capital investors in a company (other than a bank or thrift holding company existing or acquired at least three years prior to the effective date of the proposed policy) that proposes to directly or indirectly assume deposit liabilities and/or assets from a failed insured depository institution in receivership, and (b) in the case of de novo charters issued in connection with the resolution of failed insured depository institutions, applicants for insurance.

Click here to read the full alert.

UK Financial Stock Short Selling Regime—Short Selling Disclosure Regime Extended

Max Schwartz — Wed, 08 Jul 2009 14:55:53 +0000

The Financial Services Authority (FSA) rules on disclosure were due to expire on June 30, 2009. However, the obligation to disclose a net short position in a UK financial sector company is to remain in place. For details of the current disclosure obligations, please see our January 26, 2009, alert, “UK Financial Stock Short Selling Regime-FSA Releases Policy Statement.”

The current disclosure regime will remain in place until it is “superseded in due course by broader permanent disclosure measures—preferably agreed on the widest possible international basis—and/or be revoked.” The FSA has emphasized that it does not intend to keep the regime permanently.

Note: As previously set out in the January alert, the prohibition on short selling of stocks in UK financial sector companies has ended.

Further information

The Policy Statement 09/1, “Temporary short selling measures,” can be found here.
The Policy Statement 09/10, “Extension of the short selling disclosure obligation,” can be found here.
The list of UK financial sector companies can be found here.

Treasury Department Proposes Major Reforms to Regulation of U.S. Financial System

Max Schwartz — Fri, 26 Jun 2009 20:33:59 +0000

On June 17, 2009, the U.S. Department of the Treasury released a proposal for legislative and regulatory changes that, if adopted, would effect major change to the U.S. financial system. Most, but not all, of the components of the proposal derive from, or relate to, the crisis that has beset the global economy. Legislation and regulations to implement the proposal are being drafted and considered by Congress and the relevant departments and agencies. The goal of the Obama administration and Democratic leaders is to have such legislation and regulation enacted and adopted by the end of the year.

Click here to read the full alert.

Treasury Department And Sec Address Plans For Reforming Executive Compensation

Max Schwartz — Tue, 16 Jun 2009 21:02:26 +0000

On June 10, 2009, Treasury Department Secretary Timothy Geithner announced the Obama administration’s initiatives on executive compensation reform. These initiatives, which are intended to apply not just to financial institutions but to all public companies, consist of several broad-based principles for companies to consider when designing and implementing their executive compensation programs, as well as proposals for Congress to pass “say-on-pay” legislation and legislation giving compensation committees greater independence. In addition to the Treasury Department’s statement, SEC Chairman Mary Schapiro issued a statement on June 10, identifying several new executive compensation proxy disclosure rules that the SEC is actively considering. If these reforms move forward, they will likely have a major impact on executive compensation practices at all U.S. public companies.

Click here to read the full alert.

Restrictions Revised on Lobbyist Communications Regarding Stimulus Funds

Max Schwartz — Thu, 04 Jun 2009 17:00:41 +0000

On May 29, 2009, the White House announced that it is revising restrictions placed on lobbyists from communicating with executive branch officials regarding funds under the American Recovery and Reinvestment Act (Recovery Act). More detailed guidance is forthcoming from the Office of Management and Budget (OMB), but the statement released on Friday makes clear that the absolute ban on lobbyists communicating orally or participating in meetings with executive branch officials has been revised.

President Obama issued a memorandum on March 20, 2009 prohibiting registered lobbyists from having oral communications with government officials about specific Recovery Act projects or applications and requiring that government officials only consider the views of registered lobbyists on such issues if the views were submitted in writing. The memorandum also required that oral discussions of general policy matters regarding the Recovery Act made by registered lobbyists be publicly disclosed. (Please click here to read our alert on the March 20 memorandum.)

Read the full alert here.

Wage and Hour Division Releases Memorandum Concerning the Applicability of Davis-Bacon Labor Standards to Projects Funded by the Economic Stimulus Bill

Max Schwartz — Tue, 02 Jun 2009 21:29:06 +0000

This post can also be found at Akin Gump’s blog of labor issues, the Washington Labor and Employment Wire.

On May 29, 2009, the Wage and Hour Division (WHD) released a memorandum to all federal agencies and the District of Columbia regarding federal and federally-assisted construction work funded in whole or in part by the American Recovery and Reinvestment Act (ARRA). Currently, the Davis-Bacon Act requires that each contract over $2,000 for the construction, alteration, or repair of public buildings or public works to which the United States or the District of Columbia is a party must include a provision stating the minimum wages laborers and mechanics are paid. The Secretary of Labor determines the prevailing wages for the corresponding classes of laborers and mechanics employed on projects.

Section 1606 of the ARRA indicates that the Davis-Bacon prevailing wage requirement broadly applies to ARRA-funded construction projects. Projects receiving such funding must follow the requirements located in the DOL regulations at 29 C.F.R. Parts 1, 3 and 5. This provision explicitly overrides any limitation to Davis-Bacon coverage contained in other Davis-Bacon related Acts. Thus, even if a construction project receives funding from multiple statutes, the ARRA prevailing wage requirement governs if the project receives ARRA funding.

Section 1606 of the ARRA does not apply to the following contracts: (1) tribal contracts with the Bureau of Indian Affairs involving repair and restoration of roads, school improvements, repairs and replacement construction, and detention center maintenance; (2) tribal contracts with the Department of Health and Human Services, Indian Health Services involving Indian health facilities construction projects; and (3) contracts receiving project-based rental assistance funding from the Department of Housing and Urban Development.

The WHD provides additional information for construction projects receiving ARRA funding on its website.