Davis Polk is playing a pivotal role in the largest and most complex matters of the current financial crisis:
 |
Lead counsel to Citi on its agreement with agencies of the US government pursuant to which the US government will provide a package of guarantees on $306 billion of assets, liquidity access and capital, including a $20 billion investment in Citi's preferred stock under TARP and a $7 billion investment in preferred stock in connection with the above guarantees. |
 |
Lead counsel to the Federal Reserve Bank of New York (the Fed) and the US Department of the Treasury on a series of unprecedented financing transactions for AIG, the world’s largest insurer, including (i) the Fed’s $85 billion credit facility (and amendments thereto) and related equity ownership rights; (ii) the Fed’s subsequent participation in up to $37.8 billion of transactions with AIG's US securities lending program; (iii) the issuance of $40 billion of newly issued perpetual preferred shares to Treasury; (iv) the creation of two entities capitalized with up to $52.5 billion in senior financing from the Fed and designed to address issues arising out of AIG’s US securities lending program, which will be terminated, and AIG’s credit default swaps obligations. |
 |
Lead counsel to Banco Santander on its $1.9 billion acquisition of Sovereign Bancorp. |
|
Lead counsel to Citi on its proposed $56 billion rescue of Wachovia, which was the first FDIC-assisted “open bank” transaction to invoke the “systemic risk” exception to the “least cost resolution” principle. |
| Federal Reserve Bank of New York |
Counsel to the Federal Reserve Bank of New York on the US Treasury’s
$250 billion bank
capital purchase program. Counsel to the Federal Reserve Bank of New York on the creation of the Term Asset-Backed Securities Loan Facility (TALF), through which the New York Fed will extend up to $200 billion in non-recourse loans to certain holders of newly issued AAA-rated asset-backed securities collateralized by student loans, consumer loans and small-business loans. |
 |
Lead counsel to the Federal Home Loan Mortgage Corporation (Freddie Mac) on a proposed increase in its equity capital, the US government’s conservatorship and financial assistance package, as well as the Department of Justice and SEC investigations. |
 |
Counsel to Her Majesty’s Government (HMG) on US bank regulatory and other issues relating to HMG’s plan to provide financial support to the UK banking system. |
 |
Lead counsel to Citi as the organizer of a multi-bank financing on a potential pre-bankruptcy acquisition of Lehman by Barclays. The firm is also advising several major financial institutions on credit exposure issues relating to Lehman. |
 |
Lead counsel to Lloyds TSB on US bank regulatory matters on its proposed acquisition of HBOS. We are also lead US counsel to Lloyds on the investment by HMG. |
 |
Counsel to Morgan Stanley on the bank regulatory, compliance and corporate issues related to its conversion into a bank holding company. Davis Polk also advised Morgan Stanley on the structuring of the convertible preferred securities that Morgan Stanley is selling to Mitsubishi and then on Morgan Stanley’s participation in the US Treasury’s $250 billion bank capital purchase program. Further, Davis Polk has been advising Morgan Stanley in connection with multiple offerings totaling over $8 billion of SEC–registered debt securities guaranteed under the FDIC’s Temporary Liquidity Guarantee Program. |
 |
Counsel to PIMCO, a leading global investment management firm, in connection with assignments under TARP. |
 |
Lead US counsel to The Royal Bank of Scotland Group on a proposed investment by HMG. |
 |
Davis Polk provided legal support and technical analysis to the Securities Industry and Financial Markets Association, the leading financial industry association, on the Emergency Economic Stabilization Act and the $700 billion TARP (Troubled Assets Relief Program). |
 |
 |
