Alert October 07, 2008

Treasury Issues Notices Soliciting Financial Agents to Provide Infrastructure, Securities Asset Management and Whole Loan Asset Management Services for Troubled Assets Relief Program

The Treasury posted on its website solicitations for financial agents to provide services for the troubled asset relief program (the “TARP”) created by the Emergency Economic Stabilization Act of 2008 (see the AlertOctober 3, 2008 for more detail on the TARP and the Act).  (In contrast to a contractor engaged by the Treasury, a financial agent’s relationship with the Treasury is not governed by the Federal Acquisition Regulation.)  The notices indicate that the Treasury will select a single institution to provide infrastructure services for the entire portfolio of assets acquired under the TARP and  will select asset managers of securities separately from asset managers of mortgage whole loans.  Securities asset managers will handle Prime, Alt-A and Subprime residential mortgage backed securities (“MBS”), commercial MBS, and MBS collateralized debt obligations; they may also handle other types of securities if the Treasury determines that the acquisition of those securities will promote market stability.  Whole loan asset managers will handle a range of products, including residential first mortgages, home equity loans, second liens and commercial mortgage loans; they may also handle other types of mortgage loans if the Treasury determines that the acquisition of those loans will promote market stability.  The complete notices, which include additional information on eligibility, qualifications, information to be submitted and other requirements are available at:

Institutions interested in being considered for selection as financial agents must submit their requests by 5pm (EDT) on October 8, 2008.  The Treasury expects to announce the results of the first phase of the selection process next week.