"Treasury’s Rescue Plan: Opportunities for Asset Managers"

Faced with the limited success of its actions to end the deteriorating fundamentals of Wall Street, the Bush administration is asking for sweeping authority to buy up to $700 billion of mortgage-related assets.  The rescue plan, which has been informally referred to as the “troubled asset relief program,” is intended to be sufficiently large to remove the bulk of illiquid mortgage assets from the balance sheets of banks and other financial institutions.  On Saturday, September 20th, the U.S. Department of Treasury sent Congress a three page legislative proposal outlining the Department’s rescue plan to halt the current financial turmoil. 

This Stroock Special Bulletin highlights key elements of Saturday’s proposal.