Jenner & Block

Client Advisory: Summary of the Emergency Economic Stabilization Act of 2008

In this client advisory, Farhad K. Patel, Matthew J. Renaud, Deanne B. Millison and Julie A. Wenell highlight and summarize some of the major provisions of the Emergency Economic Stabilization Act (the "Act"), which President Bush signed on October 3, 2008. This Act is a revised version of the original bill that failed to pass in the House of Representatives on Monday, September 29, 2008. The revised bill includes other legislative acts that, among other things, extend tax incentives related to renewable energy, extend relief from the Alternative Minimum Tax and require health insurance coverage for mental health to be on par with coverage for physical health.  In general, the Act (i) authorizes the Secretary of the Treasury (the "Secretary") to establish a program to purchase up to $700 billion of troubled assets, (ii) requires the establishment of a program for the sale of insurance on troubled assets, (iii) places certain restrictions on executive compensation and (iv) provides for certain taxpayer/consumer protections.