Financial Markets in Crisis: Summary Table of Federal Rescue Programs

January 15, 2009

The Gibson, Dunn & Crutcher Financial Markets Crisis Group is tracking closely government responses to the turmoil that has catalyzed dramatic and rapid reshaping of our capital and credit markets.

We are providing updates on key regulatory and legislative issues, as well as information on legal issues that we believe could prove useful as firms and other entities navigate these challenging times.

This update is a table summarizing key terms of rescue efforts initiated by the Treasury Department, Federal Reserve, and Federal Deposit Insurance Corporation.  We hope that this table will prove useful to you as a quick reference guide for many of the most significant federal programs designed to assist the financial sector.



Administered By


Eligible Participants

Program Expiration Date

Application Date

Troubled Asset Relief Program (TARP)


Created by the Emergency Economic Stabilization Act of 2008 (EESA). Provides $700 billion, in tranches, to financial institutions to stabilize housing and financial markets. Thus far, Treasury has committed $350 billion of its authority.  Participating institutions must implement corporate governance and executive compensation standards; the government must take warrants in participating institutions.

Treasury may purchase "troubled assets" from any "financial institution" with significant operations in the United States and not owned by a foreign government, so long as the purchase promotes financial stability.

Dec. 31, 2009 (may be extended until Oct. 3, 2010)

Varies by program.

Troubled Assets Insurance Program


Required by the EESA; financial institutions may purchase guarantees from Treasury which would ensure "timely payment" of the principal and interest of troubled assets at par value originated or issued before March 14, 2008.

"Financial institutions" as defined by the EESA.

Dec. 31, 2009 (may be extended until Oct. 3, 2010)

Program is not operational.

Capital Purchase Program


Established under the TARP; Treasury is using $250 billion to purchase senior preferred stock in banks, thrifts, and bank holding companies.

Publicly traded companies including: U.S. banks, thrifts, bank holding companies engaged in banking activities; privately held institutions engaged in banking activities. Foreign institutions are not eligible.

No expiration; depends on Treasury’s expenditure of the $250 billion.

Publicly traded companies must have applied by Nov. 14, 2008; privately held institutions by Dec. 8, 2008.

Targeted Investment Program


Established under TARP; Treasury invests in financial institutions that threaten market stability on a case-by-case basis.  Citigroup has received $20 billion under TIP.

Treasury selects participants on a case-by-case basis and does not plan to make the program widely available.

Not provided

No application process
(case-by-case basis)

Systemically Significant Failing Institutions Program (SSFIP)


Established under the TARP and similar to TIP, Treasury selects participants on a case-by-case basis, considering what the effect of the institution’s failure would be, the number of institutions affected by its failure, and the institution’s access to other sources of capital. AIG has received funds through SSFIP.

Treasury selects participants on a case-by-case basis.

Not provided

No application process
(case-by-case basis)

Automotive Industry Financing Program


Established under TARP; aims to prevent significant disruption to the automobile industry; Treasury allocates resources based on the risk that auto manufactures pose as well as their access to other sources of capital, among other considerations. Chrysler and GM have received funds under the AIFP.

Treasury selects participants on a case-by-case basis.

Not provided

No application process
(case-by-case basis)

Temporary Guarantee for Money Market Mutual Funds


Treasury temporarily will guarantee the share price of participating money market mutual funds for amounts shareholders held as of Sept. 19, 2008. Guarantee triggered if a fund "breaks the buck" – i.e., its share price falls below $0.995.

Money market mutual funds

Extended until Apr. 30, 2009 and may be extended until Sept. 18, 2009.

To participate in the extension, currently participating funds had to opt in by Dec. 5, 2008; to participate in the original program, funds must have applied by Oct. 8, 2008.

MBS Purchase Program

Federal Reserve Bank of New York, Federal Open Market Committee

The Fed will purchase up to $500 billion in mortgage-backed securities backed by Fannie Mae, Freddie Mac, or Ginnie Mae, administered by private firms.

Private managers will trade initially only with primary dealers eligible to transact directly with the New York Fed

Not provided

The Fed has indicated that it intends to purchase up to $500 billion in agency MBS by the end of the second quarter of 2009.

Direct Purchase of GSE Securities

Federal Reserve Bank of New York

The Fed will purchase $100 billion in non-callable, senior benchmark securities issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks

Primary dealers may sell to the Fed

Not provided

Weekly auctions via FedTrade, announced one business day before the auction.

Term Asset Backed Loan Facility

Federal Reserve Bank of New York

The FRB-NY will lend as much as $200 billion to holders of newly issued securities collateralized by student and auto loans, credit card debt, and loans guaranteed by the Small Business Administration.

"All U.S. persons," including institutions, that own eligible collateral.

Dec. 31, 2009 unless extended.

Dec. 31, 2009 unless extended.

Asset Backed Commercial Paper Money Market Mutual Fund Liquidity Facility

Federal Reserve Bank of Boston

Offers loans to banking entities to purchase asset-backed commercial paper from money market mutual funds.

U.S. depository institutions, bank holding companies, and U.S. branches and agencies of foreign banks

Extended to April 30, 2009

April 30, 2009

Commercial Paper Funding Facility

Federal Reserve

Funds purchases of highly rated, U.S. dollar denominated, three-month, unsecured and asset-backed commercial paper issued by U.S. issuers by special purpose vehicles.

U.S. issuers of commercial paper

April 30, 2009 unless extended.

Issuers must register two business days prior to intended use of the CPFF.

Money Market Investor Funding Facility

Federal Reserve

Provides funding to special purpose vehicles established by the private sector (PSPVs) to purchase from eligible investors short term certificates of deposit, bank notes, and commercial paper issued by fifty specified financial institutions. The PSPVs fund the purchases by selling asset-backed commercial paper and by borrowing under the MMIFF.

Eligible investors include money market mutual funds and other money market investors.

April 30, 2009

Became operational on Nov. 24, 2009.

Temporary Liquidity Guarantee Program


Guarantees newly issued senior unsecured debt of banks, thrifts, and most holding companies of federally insured depository institutions (the "Debt Guarantee Program") as well as non-interest bearing transaction deposit accounts (the "Transaction Account Guarantee Program"). FDIC collects assessments for each program.

Federally-insured depository institutions, U.S. bank holding companies, U.S. savings and loan companies that engage only in activities permissible for financial holding companies

Guarantees expire no later than June 30, 2012.

Automatic enrollment; eligible entities must have opted out by Dec. 5, 2008.


Gibson, Dunn & Crutcher LLP

Gibson Dunn has assembled a team of experts who are prepared to meet client needs as they arise in conjunction with the issues discussed above.  Please contact Michael Bopp (202-955-8256, in the firm’s Washington, D.C. office or any of the following members of the Financial Markets Crisis Group:

Public Policy Expertise
Mel Levine – Century City (310-557-8098,
John F. Olson – Washington, D.C. (202-955-8522,
Amy L. Goodman
– Washington, D.C. (202-955-8653,
Alan Platt – Washington, D.C. (202- 887-3660,
Michael Bopp – Washington, D.C. (202-955-8256,

Securities Law and Corporate Governance Expertise
Ronald O. Mueller
– Washington, D.C. (202-955-8671,
K. Susan Grafton – Washington, D.C. (202- 887-3554,
Brian Lane – Washington, D.C. (202-887-3646,
Lewis Ferguson – Washington, D.C. (202- 955-8249,
Barry Goldsmith – Washington, D.C. (202- 955-8580,
John H. Sturc
– Washington, D.C. (202-955-8243,
Dorothee Fischer-Appelt – London (+44 20 7071 4224,
Alan Bannister – New York (212-351-2310,
Adam H. Offenhartz – New York (212-351-3808,
Mark K. Schonfeld – New York (212-351-2433,

Financial Institutions Law Expertise
Chuck Muckenfuss – Washington, D.C. (202- 955-8514,
Christopher Bellini – Washington, D.C. (202- 887-3693,
Amy Rudnick – Washington, D.C. (202-955-8210,
Rachel Couter – London (+44 20 7071 4217,

Corporate Expertise
Howard Adler – Washington, D.C. (202- 955-8589,
Richard Russo – Denver (303- 298-5715,
Dennis Friedman – New York (212- 351-3900,
Stephanie Tsacoumis – Washington, D.C. (202-955-8277,
Robert Cunningham – New York (212-351-2308,
Joerg Esdorn – New York (212-351-3851,
Wayne P.J. McArdle – London (+44 20 7071 4237,
Stewart McDowell – San Francisco (415-393-8322,
C. William Thomas, Jr.
– Washington, D.C. (202-887-3735,

Private Equity Expertise
E. Michael Greaney – New York (212-351-4065,

Private Investment Funds Expertise
Edward Sopher – New York (212-351-3918,

Real Estate Expertise
Jesse Sharf – Century City (310-552-8512,
Alan Samson – London (+44 20 7071 4222,
Andrew Levy – New York (212-351-4037,
Fred Pillon – San Francisco (415-393-8241,
Dennis Arnold – Los Angeles (213-229-7864,
Michael F. Sfregola – Los Angeles (213-229-7558,
Andrew Lance – New York (212-351-3871,
Eric M. Feuerstein – New York (212-351-2323,
David J. Furman – New York (212-351-3992,

Crisis Management Expertise
Theodore J. Boutrous, Jr. – Los Angeles (213-229-7804,

Bankruptcy Law Expertise
Michael Rosenthal – New York (212-351-3969,
David M. Feldman – New York (212-351-2366,

Oscar Garza – Orange County (949-451-3849,
Craig H. Millet – Orange County (949-451-3986,
Thomas M. Budd – London (+44 20 7071 4234,
Gregory A. Campbell – London (+44 20 7071 4236,
Janet M. Weiss – New York (212-351-3988,
Matthew J. Williams – New York (212-351-2322,
J. Eric Wise – New York (212-351-2620,

Tax Law Expertise
Arthur D. Pasternak – Washington, D.C. (202-955-8582,
Paul Issler – Los Angeles (213-229-7763,

Executive and Incentive Compensation Expertise
Stephen W. Fackler – Palo Alto (650-849-5385,
Charles F. Feldman – New York (212-351-3908,
Michael J. Collins – Washington, D.C. (202-887-3551,
Sean C. Feller – Los Angeles (213-229-7579,
Amber Busuttil Mullen – Los Angeles (213-229-7023,

© 2009 Gibson, Dunn & Crutcher LLP

Attorney Advertising: The enclosed materials have been prepared for general informational purposes only and are not intended as legal advice.