* WASHINGTON (11/25/08)--President-elect Barack Obama’s pick for the next Treasury secretary, Timothy Geithner, has won support from industry observers. After rumors of Geithner’s appointment Friday, the Dow Jones industrial average increased more than 500 points. Geithner joined the Treasury in 1988 and served as undersecretary for international affairs from 1999 to 2001 (American Banker
Nov. 24). He also directed policy development and the review department at the International Monetary Fund from 2001 to 2003. During a Senate Banking Committee hearing in April, Geithner also was perceived by senators as being more straightforward in replying to questions from lawmakers than Treasury Secretary Henry Paulson and Federal Reserve Board Chairman Ben Bernanke ... * WASHINGTON (11/25/08)--The Office of the Comptroller of the Currency (OCC) announced Friday that it granted its first conditional preliminary approval of a new type of national bank, a “self-charter,”
designed to facilitate new equity investments in troubled depository institutions. When OCC grants preliminary approval to investors for a national bank charter, the charter remains inactive until the investor group is in a position to acquire a troubled institution. By granting the preliminary approval, the OCC expands the pool of potential buyers available to buy troubled institutions. The first such approval was granted Nov. 17 to establish Ford Group Bank ... * WASHINGTON (11/25/08)--The Federal Deposit Insurance Corp. (FDIC) Friday approved a final rule
regarding the agency’s Temporary Liquidity Guarantee Program (TLGP), with a few changes. Originally, the FDIC planned to charge eligible entities 75 basis points annualized for guaranteed debt. After reviewing comments, the FDIC will charge based on a sliding scale. Shorter-term debt will have a lower fee structure and longer-term debt will have a higher fee. The range will be from 50 basis points on debt of 180 days or lesd to a maximum of 100 basis points for debt with maturities of one year or longer annualized ... * WASHINGTON (11/25/08)--The Treasury announced Monday an extension of its temporary guarantee program
for money market funds until April 30, 2009, to support ongoing stability in the market. All money market funds that participate in the program and meet the extension requirements are eligible to continue to participate. The program will cover shareholders up to the amounts they held in participating money market funds as of the close of business Sept. 19 ...