Client Alert: Treasury Extends Individual Auctions to Additional TARP Participants
As part of its continuing process to wind down the Troubled Asset Relief Program (“TARP”), the United States Department of the Treasury has invited remaining TARP issuers to participate in individual auctions of their securities held by Treasury through the Capital Purchase Program (“CPP”). Previously, only those issuers that opted out of a pooled auction by submitting a qualifying bid were eligible to participate in an individual auction of their outstanding CPP securities.
Pursuant to a letter released on June 19, 2013, issuers must advise Treasury by July 5, 2013, whether they would like to work with Treasury to prepare for an individual auction, the first of which could occur as early as August 2013.
Since Treasury began the auction process in 2012, we have counseled over 25 financial institutions and bidders in preparing for or proceeding through the auction process. We have a number of attorneys who are experienced in the corporate, securities and bank regulatory aspects of the auction process. Please contact one of our attorneys listed below if you have any questions on the auction process.