Bass, Berry & Sims attorney Michael Rivera shared his insight following Carver Bancorp’s exit from the Troubled Asset Relief Program (TARP), the government’s bailout program established in 2008 following the global financial crisis. TARP grew to include more than 750 financial institutions; following Carver’s exit, only four remain in the program. Michael has a unique perspective on these issues, having previously served in the role of Chief Investigative Counsel for the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
Asked to offer a rationale for Carver’s exit, Michael noted the benefit to Carver of no longer having the government co-own the bank, “It’s going to free them up from having the government in your shop; you always have that risk when the government is invested in the bank.”
The article also pondered the fate of the four remaining TARP banks. Michael observed that the government has the power to facilitate the exit of these banks from TARP should it desire to do so. Michael explained, for example, that the government previously sold its shares of TARP banks in public auctions. “The government could figure out a way to get them out if they wanted to,” he said.
The full article, “Only 4 Financial Institutions Still Left Under TARP After Carver Exit,” was published by S&P Global Market Intelligence on September 1 and is available online.