* WASHINGTON (5/27/09)--The Federal Reserve Board Friday announced a rule
that will allow bank holding companies to include senior perpetual preferred stock issued to the Treasury under the Troubled Asset Relief Program (TARP) in their Tier 1 capital. Bank holding companies that are S-Corps can include in Tier 1 capital all subordinated debt issued to Treasury under TARP also, and small bank holding companies that are S-Corps or organized in mutual form can exclude subordinated debt issued to Treasury under TARP from treatment as debt ... * WASHINGTON (5/27/09)--In a Friday letter to bank regulators and Treasury Secretary Timothy Geithner, Sen. Jack Reed (D-R.I.) encouraged the Treasury and regulators to use their leverage to retain Troubled Asset Relief Program (TARP) warrants even if bankers repay their rescue capital (American Banker
May 26). Banking groups have encouraged the Treasury to eliminate the warrants so they can exit TARP more easily, but Reed said retaining the warrants could help ensure taxpayers are compensated. Reed said he would monitor the purchases of the warrants and said no legal authority exists to surrender the warrants without requiring adequate compensation ... * WASHINGTON (5/27/09)--Joseph Smith was named chairman of the Conference of State Bank Supervisors. Smith is the North Carolina banking commissioner, a post he has held since 2002 (American Banker
May 26). He will serve as chair of the conference until May 2010 ...