Posted on July 31, 2009 by Hunton & Williams LLP Print This Article

House of Representatives Passes Executive Pay Limits

Today the House of Representatives passed legislation, which if enacted into law, would require publicly traded companies to hold an annual shareholder "nonbinding, advisory vote" on executive compensation, according today's House Financial Services Committee press release.  Additionally, it would require publicly traded companies' compensation committees to be made up of independent directors, also according to today's press release. 
 
The bill, the Corporate and Financial Institution Compensation Fairness Act (H.R. 3269), would require financial institutions with more than $1 billion in assets to "disclose compensation structures that include incentive-based elements," as described in both the bill's summary and today's press release.
 
Click here for the bill's summary, and click here for the press release.

Posted on July 8, 2009 by Hunton & Williams LLP Print This Article

Public-Private Investment Program Fund Managers Announced

Nine fund managers were named for the Legacy Securities Public-Private Investment Program (commonly referred to as "PPIP"), according to today's joint press release by the Treasury Department, the Federal Reserve, and Federal Deposit Insurance Corporation.  PPIP is "initially" designed to "participate in the market for commercial mortgage-backed securities and non-agency residential mortgage-backed securities," by enabling the Treasury Department to "invest up to $30 billion of equity and debt in PPIFs [PPIP funds] established with private sector fund managers and private investors for the purpose of purchasing legacy securities," according to today's press release.  The press release further details both how PPIP works and the qualification criteria for the securities. 

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Posted on July 7, 2009 by Hunton & Williams LLP Print This Article

FDIC Proposes Policy Statement on Qualifications for Failed Bank Acquisitions by Private Investors

On July 2, 2009, the Federal Deposit Insurance Corporation (FDIC) issued its proposed Statement of Policy on Qualifications for Failed Bank Acquisitions (Policy Statement). The Policy Statement is designed to provide guidance to private investors who are interested in acquiring failed depository institutions with financial assistance from the FDIC. The Policy Statement acknowledges the interest of private investors in failed depository institutions, but also expresses the FDIC’s stated concern that some private investment structures present potential safety and soundness issues and risks to the deposit insurance fund (DIF), as well as other important issues. Public comments on the proposal are due in 30 days.

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