Treasury Dept.

February 27, 2009 -- Citigroup is planning to strengthen its capital structure through conversion of a significant portion of its preferred securities to common equity in a series of exchange offers. Citigroup requested that the Treasury participate in this exchange offer by converting a portion of its preferred security to common equity alongside the other preferred holders.

Treasury is willing to participate in this arrangement to the extent Citigroup is able to reach agreement with its other preferred holders, under the following conditions:

* Treasury would convert its security to match dollar for dollar the private preferred exchanges.    » read more »

In Letter, Governor Paterson Calls for Secretary Geithner to Support Municipal Bond Market; Current Financial Crisis has Severely Hurt the Ability of Local Governments to Borrow, Driving Cost to Taxpayers

February 26, 2009 -- New York Governor David A. Paterson today called on Treasury Secretary Timothy F. Geithner to help restore the municipal bond market in order to protect the ability of local governments to borrow by issuing bonds. Governor Paterson is specifically calling for an infusion of capital from the Treasury Department to help stabilize the bond insurance market in order to reduce borrowing costs for local governments.    » read more »

Credit Offers Up to $8,000 to Qualifying Taxpayers Now; Latest Move in Swift Implementation of Administration's Recovery, Stability, Affordability Plans

February 25, 2009 -- Washington, DC – In an ongoing effort to deliver on swift implementation of the Obama Administration's recovery, stability and affordability plans, the U.S. Department of the Treasury touted today the availability of an expanded tax break for first-time homebuyers – a provision under the American Recovery and Reinvestment Act of 2009 that will make up to $8,000 available now to qualifying taxpayers who buy homes this year.    » read more »

February 25, 2009 -- Alongside the forward-looking economic assessments now being conducted by the Federal banking agencies, the U.S. Department of the Treasury today announced the terms and conditions for the Capital Assistance Program (CAP). The CAP is a core element of the Administration's Financial Stability Plan.

The purpose of the CAP is to restore confidence throughout the financial system that the nation's largest banking institutions have a sufficient capital cushion against larger than expected future losses, should they occur due to a more severe economic environment, and to support lending to creditworthy borrowers.    » read more »

Principal Financial Focus Of Call To End TARP-Subsidized Lobbying

February 24, 2009 -- WASHINGTON, D.C. -- Change to Win has called on the Treasury Department to plug the hole that has allowed TARP recipients to lobby against the interests of the taxpayers who bear the burden of paying for the Wall Street bailout. Change to Win specifically registered its opposition to granting assistance to the Principal Financial Group (NYSE: PFG), which has applied for up to $2 billion in TARP funds.    » read more »

February 23, 2009 -- Washington, DC – The U.S. Department of the Treasury, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the Federal Reserve Board today issued the following joint statement:    » read more »

February 20, 2009 -- WASHINGTON – Today, Treasury Secretary Tim Geithner and National Economic Council (NEC) Director Larry Summers convened official designees to the Presidential Task Force on the Auto Industry to discuss recently submitted restructuring plans from Chrysler LLC and General Motors Corporation.

The Task Force will be a cabinet-level group that includes the secretaries of Transportation, Commerce, Labor, and Energy. It will also include the Chair of the President's Council of Economic Advisers, the Director of the Office of Management and Budget, the EPA Administrator, and the Director of the White House Office of Energy and Climate Change. The Task Force will be led by Treasury Secretary Geithner and NEC Director Summers.    » read more »

February 18, 2009 -- The deep contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout the country.

* Millions of responsible families who make their monthly payments and fulfill their obligations have seen their property values fall, and are now unable to refinance at lower mortgage rates.

* Millions of workers have lost their jobs or had their hours cut back, are now struggling to stay current on their mortgage payments – with nearly 6 million households facing possible foreclosure.

* Neighborhoods are struggling, as each foreclosed home reduces nearby property values by as much as 9 percent.    » read more »

February 11, 2009 -- Washington, DC - The U.S. Department of the Treasury today targeted the support network of the Sri Lanka-based designated terrorist group Liberation Tigers of Tamil Eelam (LTTE) by designating the U.S.-based Tamil Foundation under Executive Order 13224. Executive Order 13224 targets terrorists and those providing support to terrorists or acts of terrorism.

"The LTTE, like other terrorist groups, has relied on so-called charities to raise funds and advance its violent aims," said Adam J. Szubin, Director of the Treasury's Office of Foreign Assets Control. "We will continue to aggressively target attempts by any terrorist group to hide behind charities, front companies, or name changes to propagate terror against innocents around the world."    » read more »

February 4th, 2009 -- "Shameful." That was the President's response last week to the news that Wall Street had doled out $18 billion in bonuses, even after the government had propped up many of the Street's most prominent firms.

Today, he and Treasury Secretary Tim Geithner took action by imposing new restrictions on executive compensation at firms taking money from the government.

President Barack Obama delivers remarks on new executive compensation restrictions    » read more »

February 4, 2009 -- Today, the Treasury Department is issuing a new set of guidelines on executive pay for financial institutions that are receiving government assistance to address our current financial crisis. These measures are designed to ensure that public funds are directed only toward the public interest in strengthening our economy by stabilizing our financial system and not toward inappropriate private gain.

The measures announced today are designed to ensure that the compensation of top executives in the financial community is closely aligned not only with the interests of shareholders and financial institutions, but with the taxpayers providing assistance to those companies.    » read more »

First banks in Arizona and Nebraska receive capital to increase lending; Banks in 45 states now participating in Treasury program

February 3, 2009 -- Washington, DC - The U.S. Treasury Department today announced investments of approximately $1.15 billion in 42 banks across the nation as part of its Capital Purchase Program (CPP), a means to directly infuse capital into healthy, viable banks with the goal of increasing the flow of financing available to small businesses and consumers. With additional capital, banks are better able to meet the lending needs of their customers, and businesses have greater access to the credit that they need to keep operating and growing.    » read more »

January 27th, 2009 -- In one of his first acts as Secretary of the Treasury, Timothy Geithner today announced new rules that will make it harder for banks to lobby for a share of money set aside by the Emergency Economic Stabilization Act.

The new rules restrict the contact that bank lobbyists can have with Treasury officials, as well as what members of Congress can do to secure money on behalf of banks in their home districts.

"American taxpayers deserve to know that their money is spent in the most effective way to stabilize the financial system," Secretary Geithner said. "Today's actions reaffirm our commitment toward that goal."    » read more »

Capital Purchase Program Funds 23 Banks to Help Meet Lending Needs of Local Consumers, Businesses

January 27, 2009 -- Washington, DC - The U.S. Treasury Department today announced investments of approximately $386 million in 23 banks across the nation as part of its Capital Purchase Program (CPP), a means to directly infuse capital into healthy, viable banks with the goal of increasing the flow of financing available to small businesses and consumers. With additional capital, banks are better able to meet the lending needs of their customers, and businesses have greater access to the credit that they need to keep operating and growing.    » read more »

January 26th, 2009 -- Timothy Geithner is now officially the 75th Secretary of the United States Treasury.

The Senate confirmed him late this afternoon by a vote of 60-34, and just a few moments ago, following an introduction by President Obama, Vice President Biden administered the oath of office.

Tomorrow, we'll take a closer look at the challenges Secretary Geithner faces in his new role leading the Treasury Department.

Source: White House