Application of the TARP Compensation Rules in the Fiscal Year in Which the TARP Obligation is Repaid

On Friday, August 28, 2009, the U.S. Treasury Department (Treasury) released frequently asked questions (FAQs) on the Interim Final Rule on TARP released on June 15. This memo sets forth the firm’s analysis of the effect of the FAQs, informed by informal conversations with Treasury, on a TARP recipient that repays its obligation prior to the deadline for forming a compensation committee.