Only Four Financial Institutions Still Left Under TARP After Carver Exit
James Stevens, a partner in Troutman Pepper’s Financial Services Practice Group, was quoted in a September 1 S&P Market Intelligence article titled, " Only 4 Financial Institutions Still Left Under TARP After Carver Exit."
Carver did not respond to requests for comment, but exiting the program frees it up from some restrictions. The most significant change is that executive compensation will no longer face limitations, according to lawyers familiar with TARP. This can help the bank with recruitment, said James Stevens, a partner at Troutman Pepper Hamilton Sanders LLP.
"It's a very competitive environment out there when you're trying to bring in the talent you need to run a bank," Stevens said in an interview. "The first thing that you'll see when a bank comes out of this is they will revisit their executive compensation arrangements."
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But those in TARP can see some benefit from the program, which is typically the source of cheaper funding relative to the market, Stevens said. Of late, the pricing on the TARP funds is less compelling as the fallout from the COVID-19 pandemic led to the Fed reducing rates, Stevens said.