Financial Crisis
Interpreting Bailout the New Client Mandate
Posted Oct 23, 2008, 01:40 pm CST
By Molly McDonough
For those in regulatory, banking and capital market practices, explaining the pros and cons of the $700 million bailout is priority No. 1.
The Emergency Economic Stabilization Act has unleashed a flood of questions from clients wondering about their options regarding the new capital, short-term debt and asset relief programs, the National Law Journal (reg. req.) reports.
Conflicts of interest, executive compensation issues and oversight are all part of the mix.
"Things are happening so fast that people are having trouble reacting in an efficient and concerted manner," Jeffrey Taft, Washington, D.C.-based partner of Mayer Brown, is quoted saying. "Everybody's strategy is just kind of constantly evolving."
The NLJ notes that it's not just the nation's largest banks that have questions. Indeed, thousands of smaller banks will need help interpreting the $125 billion that the government is offering in direct capital investment.