Tuesday, April 21, 2009

PPIP Update: Treasury Determines that PPIP Managers May be Subject to Executive Pay Limits

As reported by the Washington Post, Treasury Department attorneys have asserted that firms participating in the Public-Private Investment Program ("PPIP"), announced by Treasury Secretary Timothy F. Geithner last month, may be subject to limits on executive compensation. This determination contradicts Secretary Geithner's statement upon the announcement of the program that: "[t]he comp[ensation] conditions will not apply to the asset managers and investors in the program."

Additionally, the Special Inspector General for the Troubled Asset Relief Program ("SIGTARP") issued its Quarterly Report to Congress today, April 21, 2009, regarding the progress of the implementation of the TARP. A general overview of the PPIP appears on pages 105-111 of the Quarterly Report. Additional information on the PPIP, including answers to frequently asked questions, may be found at www.financialstability.gov, the Treasury Department website devoted to the government's Financial Stability Plan.