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Financial Stability Oversight Board Page 1 Minutes of the Financial Stability Oversight Board Meeting October 7, 2008 The initial meeting of the Financial Stability Oversight Board (“Board”) was held at the offices of the United States Department of the Treasury (“Treasury”) on Tuesday, October 7, 2008, at 2:15 p.m. (EDT). Mr. Cartwright, General Counsel, Securities and Exchange Commission MEMBERS PRESENT: Mr. Montgomery, Assistant Secretary for Housing and Commissioner of the Federal Housing Administration, Department of Housing and Urban Development Mr. Bernanke Mr. Paulson Mr. Cox Mr. Preston Mr. Lockhart AGENCY STAFF PRESENT: Mr. Kashkari, Interim Assistant Secretary of the Treasury for Financial Stability and Assistant Secretary of the Treasury for International Economics and Development Mr. Hoyt, General Counsel, Department of the Treasury Mr. Laughton, Senior Counsel, Department of the Treasury Mr. Wilcox, Deputy Director, Division of Research and Statistics, Board of Governors of the Federal Reserve System Mr. Covitz, Assistant Director, Division of Research and Statistics, Board of Governors of the Federal Reserve System Mr. Fallon, Assistant General Counsel, Board of Governors of the Federal Reserve System Mr. Sirri, Director, Division of Trading and Markets, Securities and Exchange Commission Mr. Borchert, Senior Advisor to the Secretary of the Department of Housing and Urban Development Mr. DeMarco, Chief Operating Officer and Deputy Director for Housing Goals and Mission, Federal Housing Finance Agency The meeting was called to Order by Mr. Paulson. A discussion among the Members ensued regarding the governance and potential staffing needs of the Board. Using materials provided in advance of the meeting, Mr. Hoyt then reviewed the terms of the proposed bylaws for the Board. Following a discussion of the proposed bylaws, the Members adopted the following resolution: RESOLUTION TO ADOPT BYLAWS “Whereas, there is presented to the Board, Bylaws that describe the organizational structure of the Board and establish the general operational procedures by which the Board will carry out its oversight functions and duties, Financial Stability Oversight Board Page 2 Therefore, after discussion among the Board members and on motion duly made, seconded and unanimously carried, it was Resolved, that the Board approve and adopt the Bylaws as presented to the Board.” A discussion then occurred regarding the position of Chairperson of the Board. Following this discussion, the Board, with Mr. Bernanke abstaining, adopted the following resolution: RESOLUTION CHAIRPERSON TO ELECT A “Whereas, Section 104 of the Emergency Economic Stabilization Act of 2008 provides for the election by members of the Financial Stability Oversight Board (Board) of a Chairperson from among the members of the Board other than the Secretary of the Treasury, Therefore, after discussion among the Board members and on motion duly made, seconded and carried, it was Resolved, that the Chairman of the Board of Governors of the Federal Reserve System, Mr. Bernanke, is hereby elected Chairperson of the Board.” Mr. Paulson and other officials of the Treasury, using materials provided, then briefed the Board with respect to the steps that Treasury had taken and proposed to take to implement the Troubled Asset Relief Program (“TARP”) and related provisions of the Emergency Economic Stabilization Act of 2008 (“EESA”) to help promote stability in the U.S. financial system. A discussion among Treasury officials and Members of the Board ensued concerning the types of programs that Treasury planned to implement under the TARP, as well as the potential ability of the TARP to provide capital to financial institutions. Members and staff also discussed expected operations, policies procedures and systems to ensure compliance with the requirements of the EESA and potential policies governing executive compensation and the prevention of avoidable foreclosures. In addition, Members and staff discussed the progress being made by Treasury in identifying and hiring officers for the TARP, as well as the development of requests for proposals and the selection of financial agents and contractors for the TARP, including investment management advisers, custodians, asset managers, and accounting firms. The meeting was adjourned at approximately 3:15 pm (EDT). [Signed Electronically] _________________________________ Jason A. Gonzalez Secretary
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