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MBHI » Topics » There can be no assurance that the recently enacted Emergency Economic Stabilization Act of 2008, the American Recovery and Reinvestment Act of 2009 and other recently enacted government programs will help stabilize the U.S. financial system.These excerpts taken from the MBHI 10-K filed Mar 11, 2009. There can
be no assurance that the recently enacted Emergency Economic
Stabilization Act of 2008, the American Recovery and
Reinvestment Act of 2009 and other recently enacted government
programs will help stabilize the U.S. financial
system.
On October 3, 2008, the Emergency Economic Stabilization
Act of 2008, EESA, was enacted. The U.S. Treasury and
banking regulators are implementing a number of programs under
this legislation and otherwise to address capital and liquidity
issues in the banking system, including the TARP Capital
Purchase Program. In addition, other regulators have taken steps
to attempt to stabilize and add liquidity to the financial
markets, such as the FDIC Temporary Liquidity Guarantee Program,
TLG Program, which we did not “opt-out” of. However,
there can be no assurance that we will issue any guaranteed debt
under the TLG Program, or that we will participate in any other
stabilization programs in the future.
The EESA followed, and has been followed by, numerous actions by
the Federal Reserve, the U.S. Congress, U.S. Treasury,
the FDIC, the SEC and others to address the current liquidity
and credit crisis that has followed the sub-prime meltdown that
commenced in 2007. These measures include homeowner relief that
encourage loan restructuring and modification; the establishment
of significant liquidity and credit facilities for financial
Table of Contents
institutions and investment banks; the lowering of the federal
funds rate; emergency action against short selling practices; a
temporary guaranty program for money market funds; the
establishment of a commercial paper funding facility to provide
back-stop liquidity to commercial paper issuers; and coordinated
international efforts to address illiquidity and other
weaknesses in the banking sector.
On February 17, 2009, President Barack Obama signed the
American Recovery and Reinvestment Act of 2009, ARRA, more
commonly known as the economic stimulus or economic recovery
package. ARRA includes a wide variety of programs intended to
stimulate the economy and provide for extensive infrastructure,
energy, health and education needs. In addition, ARRA imposes
new executive compensation and corporate governance limits on
current and future participants in TARP, including the Company,
which are in addition to those previously announced by
U.S. Treasury. The new limits remain in place until the
participant has redeemed the preferred stock sold to
U.S. Treasury, which is now permitted under ARRA without
penalty and without the need to raise new capital, subject to
U.S. Treasury’s consultation with the recipient’s
appropriate federal regulator.
There can also be no assurance as to the actual impact that the
EESA, the ARRA and other programs will have on the financial
markets, including the extreme levels of volatility and limited
credit availability currently being experienced. The failure of
the EESA, the ARRA and other programs to stabilize the financial
markets and a continuation or worsening of current financial
market conditions could materially and adversely affect our
business, financial condition, results of operations, access to
credit or the trading price of our common stock.
The EESA and the ARRA are relatively new legislation and, as
such, is subject to change and evolving interpretation. This is
particularly true given the change in administration that
occurred on January 20, 2009. There can be no assurances as
to the effects that such changes will have on the effectiveness
of the EESA or on our business, financial condition or results
of operations.
The purpose of these legislative and regulatory actions is to
stabilize the U.S. banking system. The EESA, the ARRA and
the other regulatory initiatives described above may not have
their desired effects. If the volatility in the markets
continues and economic conditions fail to improve or worsen, our
business, financial condition, results of operations and cash
flows could be materially and adversely affected.
There can be no assurance that the recently enacted Emergency Economic Stabilization Act of 2008, the American Recovery and Reinvestment Act of 2009 and other recently enacted government programs will help stabilize the U.S. financial system. On October 3, 2008, the Emergency Economic Stabilization Act of 2008, EESA, was enacted. The U.S. Treasury and banking regulators are implementing a number of programs under this legislation and otherwise to address capital and liquidity issues in the banking system, including the TARP Capital Purchase Program. In addition, other regulators have taken steps to attempt to stabilize and add liquidity to the financial markets, such as the FDIC Temporary Liquidity Guarantee Program, TLG Program, which we did not “opt-out” of. However, there can be no assurance that we will issue any guaranteed debt under the TLG Program, or that we will participate in any other stabilization programs in the future. The EESA followed, and has been followed by, numerous actions by the Federal Reserve, the U.S. Congress, U.S. Treasury, the FDIC, the SEC and others to address the current liquidity and credit crisis that has followed the sub-prime meltdown that commenced in 2007. These measures include homeowner relief that encourage loan restructuring and modification; the establishment of significant liquidity and credit facilities for financial
Table of Contentsinstitutions and investment banks; the lowering of the federal funds rate; emergency action against short selling practices; a temporary guaranty program for money market funds; the establishment of a commercial paper funding facility to provide back-stop liquidity to commercial paper issuers; and coordinated international efforts to address illiquidity and other weaknesses in the banking sector. On February 17, 2009, President Barack Obama signed the American Recovery and Reinvestment Act of 2009, ARRA, more commonly known as the economic stimulus or economic recovery package. ARRA includes a wide variety of programs intended to stimulate the economy and provide for extensive infrastructure, energy, health and education needs. In addition, ARRA imposes new executive compensation and corporate governance limits on current and future participants in TARP, including the Company, which are in addition to those previously announced by U.S. Treasury. The new limits remain in place until the participant has redeemed the preferred stock sold to U.S. Treasury, which is now permitted under ARRA without penalty and without the need to raise new capital, subject to U.S. Treasury’s consultation with the recipient’s appropriate federal regulator. There can also be no assurance as to the actual impact that the EESA, the ARRA and other programs will have on the financial markets, including the extreme levels of volatility and limited credit availability currently being experienced. The failure of the EESA, the ARRA and other programs to stabilize the financial markets and a continuation or worsening of current financial market conditions could materially and adversely affect our business, financial condition, results of operations, access to credit or the trading price of our common stock. The EESA and the ARRA are relatively new legislation and, as such, is subject to change and evolving interpretation. This is particularly true given the change in administration that occurred on January 20, 2009. There can be no assurances as to the effects that such changes will have on the effectiveness of the EESA or on our business, financial condition or results of operations. The purpose of these legislative and regulatory actions is to stabilize the U.S. banking system. The EESA, the ARRA and the other regulatory initiatives described above may not have their desired effects. If the volatility in the markets continues and economic conditions fail to improve or worsen, our business, financial condition, results of operations and cash flows could be materially and adversely affected. There can be no assurance that the recently enacted Emergency Economic Stabilization Act of 2008, the American Recovery and Reinvestment Act of 2009 and other recently enacted government programs will help stabilize the U.S. financial system. On October 3, 2008, the Emergency Economic Stabilization Act of 2008, EESA, was enacted. The U.S. Treasury and banking regulators are implementing a number of programs under this legislation and otherwise to address capital and liquidity issues in the banking system, including the TARP Capital Purchase Program. In addition, other regulators have taken steps to attempt to stabilize and add liquidity to the financial markets, such as the FDIC Temporary Liquidity Guarantee Program, TLG Program, which we did not “opt-out” of. However, there can be no assurance that we will issue any guaranteed debt under the TLG Program, or that we will participate in any other stabilization programs in the future. The EESA followed, and has been followed by, numerous actions by the Federal Reserve, the U.S. Congress, U.S. Treasury, the FDIC, the SEC and others to address the current liquidity and credit crisis that has followed the sub-prime meltdown that commenced in 2007. These measures include homeowner relief that encourage loan restructuring and modification; the establishment of significant liquidity and credit facilities for financial
Table of Contentsinstitutions and investment banks; the lowering of the federal funds rate; emergency action against short selling practices; a temporary guaranty program for money market funds; the establishment of a commercial paper funding facility to provide back-stop liquidity to commercial paper issuers; and coordinated international efforts to address illiquidity and other weaknesses in the banking sector. On February 17, 2009, President Barack Obama signed the American Recovery and Reinvestment Act of 2009, ARRA, more commonly known as the economic stimulus or economic recovery package. ARRA includes a wide variety of programs intended to stimulate the economy and provide for extensive infrastructure, energy, health and education needs. In addition, ARRA imposes new executive compensation and corporate governance limits on current and future participants in TARP, including the Company, which are in addition to those previously announced by U.S. Treasury. The new limits remain in place until the participant has redeemed the preferred stock sold to U.S. Treasury, which is now permitted under ARRA without penalty and without the need to raise new capital, subject to U.S. Treasury’s consultation with the recipient’s appropriate federal regulator. There can also be no assurance as to the actual impact that the EESA, the ARRA and other programs will have on the financial markets, including the extreme levels of volatility and limited credit availability currently being experienced. The failure of the EESA, the ARRA and other programs to stabilize the financial markets and a continuation or worsening of current financial market conditions could materially and adversely affect our business, financial condition, results of operations, access to credit or the trading price of our common stock. The EESA and the ARRA are relatively new legislation and, as such, is subject to change and evolving interpretation. This is particularly true given the change in administration that occurred on January 20, 2009. There can be no assurances as to the effects that such changes will have on the effectiveness of the EESA or on our business, financial condition or results of operations. The purpose of these legislative and regulatory actions is to stabilize the U.S. banking system. The EESA, the ARRA and the other regulatory initiatives described above may not have their desired effects. If the volatility in the markets continues and economic conditions fail to improve or worsen, our business, financial condition, results of operations and cash flows could be materially and adversely affected. | EXCERPTS ON THIS PAGE:
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