Impact of the Emergency Economic Stabilization Act of 2008 on Investment Management Firms

The Emergency Economic Stabilization Act of 2008 (Act) will directly impact investment management firms of all kinds, with the greatest impact on those firms managing accounts holding “troubled assets” eligible for purchase by the U.S. Treasury and the few firms chosen to manage the Treasury’s portfolios of troubled assets. Although the Act runs 451 pages, details on key aspects of the government’s troubled asset recovery program that affect the investment management industry remain to be spelled out by the Treasury. Despite this, investment management firms should start considering how various aspects of the Act may affect their business activities. We discuss these subjects below.

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