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FINANCIAL STABILITY OVERSIGHT BOARD Page 1 Minutes of the Financial Stability Oversight Board Meeting April 20, 2011 A meeting of the Financial Stability Oversight Board (“Board”) was held at 2:30 p.m. (EST) on Wednesday, April 20, 2011, via teleconference. MEMBERS PARTICIPATING: Mr. Bernanke, Chairperson Mr. Donovan Ms. Schapiro Mr. DeMarco STAFF PARTICIPATING: Mr. Treacy, Executive Director Mr. Gonzalez, General Counsel and Secretary AGENCY OFFICIALS PARTICIPATING: Mr. Massad, Acting Assistant Secretary for Financial Stability, Department of the Treasury Ms. Caldwell, Chief of Homeownership Preservation Office, Office of Financial Stability, Department of the Treasury Mr. Pendo, Director of Investments, Office of Financial Stability, Department of the Treasury Mr. Clair, Senior Advisor to the Acting Assistant Secretary for Financial Stability, Department of the Treasury Mr. Apgar, Senior Advisor to the Secretary, Department of Housing and Urban Development Mr. Delfin, Special Counsel to the Chairman, Securities and Exchange Commission Mr. Lawler, Chief Economist, Federal Housing Finance Agency Chairperson Bernanke called the meeting to order at approximately 2:35 p.m. (EST). The Board first considered draft minutes for the meeting of the Board on March 28, 2011, which had been circulated in advance of the meeting. Upon a motion duly made and seconded, the Members voted to approve the minutes of the meeting, subject to such technical revisions as may be received from the Members. Treasury officials then provided an update on the programs established by Treasury under the Troubled Asset Relief Program (“TARP”). Discussion during the meeting focused on the Automotive Industry Financing Program (“AIFP”); the American International Group, Inc. (“AIG”); the Capital Purchase Program (“CPP”); and the Making Home Affordable (“MHA”) program and related initiatives. Among the materials distributed in advance of the meeting was the monthly report issued by Treasury under Section 105(a) of the Emergency Economic Stabilization Act (“EESA”), which contains information concerning the programs established by Treasury under TARP and aggregate information regarding the allocated and disbursed amounts under TARP. During the meeting, Members raised and discussed various matters with respect to the effects FINANCIAL STABILITY OVERSIGHT BOARD of the policies and programs established under TARP. Using prepared materials, Treasury officials provided an update on the expected final cost of TARP programs. Treasury officials discussed with Members the results of Treasury’s daily TARP update for April 1, 2011, which showed for each TARP program the amount of funds obligated, the amount actually disbursed, repayments and income received, and any losses with regard to individual TARP investments. Officials noted that Treasury had recovered approximately $251 billion from the capital and banking programs established under the TARP through repayments, dividends, interest and other income. This amount exceeds Treasury’s aggregate investment in these programs by approximately $6 billion. Treasury officials then provided an update on the status of the U.S. Government investments in General Motors, Inc. (“GM”), Chrysler Group LLC (“Chrysler”) and Ally Financial, Inc. (“Ally”), including the potential public and private options available to exit from Treasury’s equity investments under the AIFP. Officials noted that on March 31, 2011, Ally filed a registration statement with the Securities and Exchange Commission for a proposed public offering of common shares in which Treasury could participate by selling shares it owned. Treasury will retain the right, at all times, to decide whether and at what level to participate in the offering. Using prepared materials, Treasury officials then reported on the status of AIG’s ongoing efforts to repay the assistance provided to the company by the U.S. government. Page 2 Treasury officials then provided an update on recent transactions under the CPP, including Treasury’s recent sales of warrants received under the CPP and exchanges of Treasury’s CPP investments in certain institutions for other assets. Officials noted that, as of March 31, 2011, Treasury had received approximately $178.74 billion in total repayments under the CPP. As part of this discussion, Members and officials also discussed the twenty-five largest remaining CPP investments, the likely pace of future repayments, and the influence of such repayments on the ultimate return to taxpayers. Officials also discussed the status of missed dividend or interest payments by institutions participating in the CPP, along with Treasury’s contractual right to appoint up to two directors to the board of directors of any institution that has missed six payments. Officials noted that Treasury has interviewed some potential candidates to serve as directors in such cases and expected to begin the corporate and regulatory procedures to nominate directors to certain of these institutions shortly. Using prepared materials, Treasury officials then provided an update on the MHA and other related housing initiatives, including the Home Affordable Modification Program (“HAMP”). Among the matters discussed were: the numbers of temporary and permanent modifications made under HAMP and the status of the Second Lien Modification Program, Unemployment Forbearance Program and the Home Affordable Foreclosure Alternatives (“HAFA”) program. As part of this discussion, Members and officials also discussed FHA’s progress in reviewing loans to homeowners who had FINANCIAL STABILITY OVERSIGHT BOARD not been offered modifications through the Federal Housing AdministrationHAMP, to ensure that their exclusion was appropriate. Members and officials then engaged in a discussion regarding the Board’s quarterly report to Congress for the quarter ending December 31, 2010, that will be issued by the Board pursuant to section 104(g) of the EESA. Members and officials discussed, among other things, the timing and potential content of the report. The meeting was adjourned at approximately 3:30 p.m. (EST). [Signed Electronically] ______________________________ Jason A. Gonzalez General Counsel and Secretary Page 3