10 Things to Know About Tarp Transactions

September 28, 2012

If you have Troubled Asset Relief Program preferred stock on your books, want to buy a bank that has Tarp on its books or seek to invest in an institution that that still has Tarp on its books, there are ten things that you should keep in mind as you attempt to structure a deal with Treasury.

Before reviewing those, let’s consider the facts. There are some 300 financial institutions that still have Tarp on their books. Treasury wants it off the U.S. balance sheet, if for no other reason than to turn the page on the recent financial crisis. It has a team of talented financial and legal experts that are working on various transactions that involve redeeming Tarp securities, selling or restructuring them, sometimes in connection with recapitalizations by new investors of Tarp institutions. To read the full analysis, please click here.