Massachusetts Delegation Commends Treasury Department’s Action on Mutual Banks and Savings Associations
Members of the Massachusetts Congressional delegation in the House of Representatives yesterday sent a letter to Treasury Secretary Timothy Geithner commending the Department of Treasury’s intention to issue a term sheet for mutual banks and saving associations that will allow those institutions to participate in the TARP Capital Purchase Program (CPP).
The letter was signed by the following members: Reps. Barney Frank, Edward Markey, Richard Neal, John Olver, William Delahunt, James McGovern, John Tierney, Michael Capuano, Stephen Lynch, Niki Tsongas.
Below is the text of the letter:
March 25, 2009
Dear Mr. Secretary:
We are pleased to learn that you intend to act promptly to issue a term sheet for mutual banks and savings associations that will allow those institutions to participate in the Troubled Asset Relief Program (TARP) Capital Purchase Program (CPP). As you know, these institutions play critical roles in their communities, particularly in small towns and in the states where they are the predominant local and small business lenders, and their continued exclusion from participation in the CPP is simply unacceptable.
Since establishing the CPP in October 2008, Treasury has issued term sheets for participation by publicly-held institutions, privately-held institutions and S corporations, but not for mutual institutions. Because of the disappointing delay by Treasury in developing such a term sheet, the House included in H.R. 384, the TARP Reform Act passed in January, a provision explicitly directing Treasury “to promptly make funds available for smaller community institutions,” including mutual institutions.
We therefore appreciate very much your commitment to quickly issue standards under which mutual institutions can access CPP funds under economic terms comparable to those applicable to the largest banks that have already received capital infusions under the CPP.