Katten Creates Task Force To Address Treasury´s Distressed Asset Purchase Program

Katten has formed a multidisciplinary task force to address the Treasury Department's proposal to purchase up to $700 billion of distressed assets. The task force draws upon Katten's experience representing the Resolution Trust Corporation in its disposition of defaulted illiquid assets, and will involve members of Katten's structured finance and securitization, real estate, banking, financial services, derivatives, bankruptcy and litigation practices. Treasury's proposed plan has been outlined in the legislative proposal submitted to Congress, the fact sheet released by Treasury, and public comments made by the Treasury Secretary.

As outlined in the legislative proposal submitted to Congress, the plan gives the Treasury Secretary broad authority to purchase, manage and dispose of up to $700 billion of whole residential or commercial loans or other "securities, obligations, or other instruments that are based on or related to" such loans. However, according to the