Posted on January 13, 2009 by Hunton & Williams LLP Print This Article

Second Half of TARP Funds Requested, Federal Reserve Supports Stimulus Package

The second half of TARP funds, the remaining $350 billion, has been requested on behalf of President-elect Barack Obama according to Interim Assistant Treasury Secretary Neel Kashkari in a speech this morning.  Also notable in Mr. Kashkari's speech is his report that the Capital Purchase Program currently has thousands of applicants seeking capital injections in return for offering the Treasury Department stock or warrants.  In a  separate speech, Federal Reserve Board Chairman Ben Bernanke said that more such capital injections may be required to stabilize the economy along with a host of other measures.  Chairman Bernanke pointedly supported a stimulus package but noted that a number of measures must work together including "a substantial expansion of guarantees for bank liabilities by the Federal Deposit Insurance Corporation" in order to strengthen the financial system.  Click here for Assistant Secretary Kashkari's speech and click here for Chairman Bernanke's speech.

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