March 18, 2010
TG-595

Treasury Designates Key Associates of Colombian Drug Lord Daniel Rendon Herrera as Narcotics Traffickers

WASHINGTON – The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today designated 15 individuals and eight companies as Specially Designated Narcotics Traffickers for their ties to Colombian narcotics trafficker Daniel Rendon Herrera (a.k.a. "Don Mario").  Today's action, pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act), prohibits U.S. persons from conducting financial or commercial transactions with the designees and freezes any assets they may have under U.S. jurisdiction.

Daniel Rendon Herrera, identified as a drug kingpin by President Obama in May 2009 pursuant to the Kingpin Act, has extensive drug transportation networks throughout Colombia that have facilitated the shipment of cocaine to the United States and Europe.  Rendon Herrera was arrested by Colombian authorities in April 2009, and the United States is seeking his extradition.  Daniel Rendon Herrera and his brother Freddy Rendon Herrera face federal narcotics importation and narco-terrorism conspiracy charges in the U.S. District Court for the Southern District of New York pursuant to a June 2009 indictment. 

"Today's designation builds on the President's May 2009 identification of Daniel Rendon Herrera by attacking the financial underpinnings of his network of criminal supporters, trusted financial managers, and front companies," said OFAC Director Adam J. Szubin. 

Today's OFAC designation targets key members of the Daniel Rendon Herrera drug trafficking organization, including Freddy Rendon Herrera ("El Aleman"), Jhon Freddy Manco Torres ("El Indio"), Camilo Torres Martinez ("Fritanga"), and Juan Felipe Sierra Fernandez.  OFAC also targeted leaders of criminal groups, known as Bandas Criminales, or BACRIM, in Colombia that are associated with Rendon Herrera, including Juan de Dios Usuga David, Dairo Antonio Usuga David, Walter Ochoa Guisao, Jose Maria Negrete Luna, Roberto Vargas Gutierrez, and Arnulfo Sanchez Gonzalez. BACRIM is a general term for criminal organizations that operate in specific zones of control throughout Colombia and are involved in a wide range of criminal activities, including drug trafficking, drug debt collections, arms trafficking, money laundering, extortion, kidnappings, and assassinations. The BACRIM criminal groups absorbed demobilized paramilitary members of the Autodefensas Unidas de Colombia (a.k.a. AUC) and other drug trafficking organizations in Colombia.

Treasury also today designated Rendon Herrera's key frontmen based in Antioquia, Colombia: Julio Alberto Toro Osorio, Julio Cesar Nino Cardenas, and Carlos Mario Salazar Cardenas.  Today's action targets companies owned or controlled by members of the Rendon Herrera drug trafficking organization, including private security companies Control Total Ltda., Vigilar Colombia Ltda., and Caninos Profesionales Ltda.; auto dealerships Mi Carro E.U. and Renta Camperos Uraba Ltda.; vehicle repair shops Centro de Diagnostico Automotriz Eje Bananero S.A. and Repuestos El Nato y Cia. Ltda.; and a large scale farm Agropecuaria Hato Santa Maria Ltda.  The companies are located in the cities of Medellin, Envigado, and Apartado in Antioquia, Colombia.

Today's action is part of ongoing efforts under the Kingpin Act to apply financial measures against significant foreign narcotics traffickers worldwide.  Including today's action, more than 600 businesses and individuals around the world associated with 82 drug kingpins have been designated pursuant to the Kingpin Act since June 2000.  Penalties for violations of the Kingpin Act range from civil penalties of up to $1.075 million per violation to more severe criminal penalties.  Criminal penalties for corporate officers may include up to 30 years in prison and fines up to $5 million.  Criminal fines for corporations may reach $10 million.  Other individuals face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.

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REPORTS

• Daniel Rendon Herrera Organization

Treasury Designates Gaza-Based Business, Television Station for Hamas Ties

WASHINGTON – The U.S. Department of the Treasury today designated the Islamic National Bank (INB) of Gaza for being controlled by Hamas, a Specially Designated Global Terrorist, and for providing financial services to Hamas members and employees, including members of the organization's military wing. Treasury also today designated Al-Aqsa Television, a television station in Gaza financed and controlled by Hamas.  Today's actions, taken pursuant to Executive Order 13224, freeze any assets INB or Al-Aqsa Television hold under U.S. jurisdiction and prohibit U.S. persons from engaging in any transactions with these parties.  Executive Order 13224 targets terrorists, terrorist organizations, persons owned or controlled by or acting for or on behalf of designated terrorists or terrorist organizations, and those providing financial, material, or technological support to designated terrorists or terrorist organizations, or for acts of terrorism. 

"Consistent with our commitment to a well-regulated and transparent financial system in the Palestinian territories, Treasury will continue to expose Hamas's efforts to create institutions with the trappings of legitimacy that are in fact controlled by and used to support a terrorist organization," said Under Secretary for Terrorism and Financial Intelligence Stuart Levey. 

Hamas opened INB in Gaza City in April 2009 after more than two years of planning.  Lacking a legal license from the Palestinian Monetary Authority (PMA), Hamas officials "authorized" the opening of the institution and provided $20 million of the initial capital.  The INB operates outside the legitimate financial system and is not in compliance with Palestinian Authority (PA) banking or securities regulations.  The PA, the PMA and the Palestinian Capital Market Authority have publicly declared the business illegal and have issued public warnings to citizens against doing business with INB or buying its shares.   

While posing as a legitimate financial institution, INB is providing Hamas with a means to receive and store large amounts of smuggled cash to use at the organization's discretion.  In May 2009, Hamas's finance office in Gaza moved 1.1 million Euros to INB, with which it then paid the salaries of members of Hamas's military wing who held accounts there.  Hamas has also opened thousands of accounts for its members at INB through which it pays salaries.

The INB's board of directors and its senior management consist of high-ranking and prominent Hamas activists, including the chairman of the board of directors and chief executive officer, both of whom were appointed to their positions because of their connections with Hamas.

Also designated today is Al-Aqsa Television, a television station financed and controlled by Hamas.  Al-Aqsa is a primary Hamas media outlet and airs programs and music videos designed to recruit children to become Hamas armed fighters and suicide bombers upon reaching adulthood.

"Treasury will not distinguish between a business financed and controlled by a terrorist group, such as Al-Aqsa Television, and the terrorist group itself," Levey said.

Hamas leadership raised the initial capital for the station shortly after the January 2006 Palestinian elections.  At that time, donors contributed half a million dollars for the channel, which was to be headed by members of Hamas, and shortly thereafter, Hamas leaders negotiated broadcasting arrangements with a satellite television provider.  As of late 2009, the Hamas headquarters in Damascus, Syria, allocated hundreds of thousands of dollars for Al-Aqsa TV's budget, and senior Hamas officials continued to control the station's operations.

Fathi Hammad, the former director of Al-Aqsa TV, currently serves as the Hamas interior minister in Gaza, is a former senior member of Hamas's military wing in Gaza, and as of 2007, was a member of the Hamas Shura Council.  Hammad has supervised the construction of smuggling tunnels for Hamas and has encouraged the building and use of homemade weapons for use against Israel.  In May 2009, Dr. Mahmud Abu-Daf replaced Hammad as the head of Al-Aqsa TV.  Abu-Daf is a senior Hamas figure who served as a member of the Hamas Shura Council and Political Bureau.

Hamas, a Specially Designated Global Terrorist backed by Iran, has intentionally killed hundreds of civilians, including U.S. citizens.  Its violent takeover of Gaza in 2007 has allowed continued rocket attacks against Israeli cities and civilians within range of the territory.  As of this year, Hamas has continued to ignore demands from the international community to renounce violence and accept the other Quartet principles, including the recognition of Israel and a commitment to abide by past diplomatic agreements.  Moreover, statements by Hamas leader Khaled Mish'al indicate that the group continues to produce and smuggle weapons into Gaza.

Identifying Information:

Name:                                      Islamic National Bank of Gaza

AKA:                                      Palestine Islamic National Bank

AKA:                                      Islamic National Bank

AKA:                                      National Islamic Bank

AKA:                                      Islamic National Bank Company

AKA:                                      National and Islamic Bank

Location 1:                              Gaza City, Gaza

Address 1:                               Al-Wandah Al-Yarmuk street junction

Location 2:                              Khan Yunis, Gaza

District:                                   Al-Rimal

Registration Number:  563201581

Telephone:                               0097082881183

Fax:                                         0097082881184

Website:                                  www.INB.ps

Email:                                      info@INB.ps

Entity:                                     Al-Aqsa TV

AKA:                                      Siraj Al-Aqsa TV

AKA:                                      Hamas TV

AKA:                                      The Aqsa Lamp

AKA:                                      Al-Aqsa Satellite Television

Location:                                 Jabaliya, Gaza

Telephone:                               0097282851500

Fax:                                         0097282858208

Website:                                  www.AQSATV.ps

Email:                                      info@AQSATV.ps

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March 17, 2010
TG-592

Treasury and Education Announce 2010 School Bond Allocation

Administration Announces Opening of Exam Window for National Financial Capability Challenge

Deadline for teacher sign up extended to April 9^th  

WASHINGTON – Starting this week, students from across the country may begin the National Financial Capability Challenge for a chance to be recognized by the Obama Administration for their outstanding achievement. The Challenge, which was unveiled in December 2009 by Treasury Secretary Tim Geithner and Education Secretary Arne Duncan, is an awards program designed to increase the financial knowledge and capability of high school aged youth across the United States. It challenges high school teachers and other educators to teach the basics of personal finance - and rewards students, educators, schools, and states for their participation and performance. With more than 5,000 educators already registered, students from across the country are expected to take the voluntary online exam in the coming weeks. The Administration also announced today that the deadline for educators to sign on has been extended to April 9, 2010, which is the final day to administer the exam.

"We're encouraged that so many educators across the country are demonstrating their commitment to preparing students for a successful financial future by participating in this program," said Treasury Deputy Secretary Neal Wolin. "And, in response to high demand, we're extending the registration period to enable more students to participate."

"The overwhelming response to the Challenge is a strong signal from educators that students need a well-rounded education that includes learning about personal finance," said Education Deputy Chief of Staff Matthew Yale. "We agree with them, and we will continue to work together with teachers, schools, and states on this issue."

Educators who registered for the Challenge received a free Educator Toolkit to complement their own lesson plans to teach students the basics of personal finance in preparation for the voluntary online Challenge exam and beyond. The window for educators to begin administering the exam begins today and ends on April 9^th. Once the exam results are in, educators and top-scoring students will be recognized for their achievements, along with states that had the highest Challenge participation.

All high school teachers and other educators working with U.S. high-school aged students (ages 13-19) are encouraged to register for the Challenge, download the Educator Toolkit, prepare their students, and administer the online exam. Educators who have been teaching students about personal finance for years, as well as those who never have before are urged to join this national initiative today.

For more information about the National Financial Capability Challenge, go to http://challenge.treas.gov/educator_info.htm

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March 12, 2010
TG-586

Administration Releases February Loan Modification Report
Number of permanent modifications increases by 45 percent

WASHINGTON - The U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) today released February data for the Administration's Home Affordable Modification Program (HAMP). As of the end of the month, more than one million borrowers were receiving a median savings of $500 each month – a 36 percent median monthly payment decrease. Permanent modifications have been granted to 170,000 homeowners and an additional 91,800 permanent modifications have been approved by servicers and are pending only borrower acceptance.

The February HAMP report can be found here:

http://www.makinghomeaffordable.gov/docs/Feb%20Report%20031210.pdf

# # #

REPORTS

• Making Home Affordable Program Report

Treasury Department Announces Pricing of
Public Offering of Warrants to Purchase
Common Stock of Texas Capital Bancshares, INC

WASHINGTON -- The U.S. Department of the Treasury announced today that it priced a secondary public offering of 758,086 warrants to purchase common stock of Texas Capital Bancshares, Inc. (the "Company") at $8.85 per warrant. The aggregate net proceeds to Treasury from the offering are expected to be $6,559,066. These proceeds provide an additional return to the American taxpayer from Treasury's investment in the Company beyond the dividend payments it received on the related preferred stock.

The closing is expected to occur on or about March 17, 2010, subject to customary closing conditions. The offering was priced through a modified Dutch auction. Deutsche Bank Securities Inc. is the sole book-running manager for the offering. This offering represents Treasury's sale of its remaining investment in the Company.

The warrants were offered pursuant to an effective shelf registration statement that was filed by the Company with the Securities and Exchange Commission (the "SEC"). A preliminary prospectus supplement relating to the offering was filed with the SEC on March 8, 2010, and a final prospectus supplement will be filed by the Company with the SEC and will be available on the SEC's website at http://www.sec.gov.

Copies of the final prospectus supplement relating to these securities may be obtained, when available, from Deutsche Bank Securities Inc., Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, New Jersey 07311-3988, telephone: 1-800-503-4611 or by emailing prospectusrequest@list.db.com. Before you invest, you should read the prospectus and prospectus supplement in the registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the warrants.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

# # #

Treasury Announces Confirmation of Three Key
International Financial Institution Posts

WASHINGTON – The U.S. Department of the Treasury today announced that Ian H. Solomon, Walter C. Jones and Douglas A. Rediker were confirmed Wednesday by the United States Senate to serve as the

U.S. Executive Director to the International Bank for Reconstruction and Development (IBRD), U.S. Executive Director to the African Development Bank (AFDB) and the U.S. Alternate Executive Director to the International Monetary Fund (IMF) Board respectively.

As U.S. Executive Director to the IBRD, Solomon will serve on the Board of Directors, which makes decisions on loan and investment proposals, reviews the policy issues that guide the general operations of the Bank and provides broad oversight of, and guidance to, the Bank's senior management.

Previously, Solomon was Senior Advisor to the Treasury Secretary on international and domestic issues, including the Administration's global food security initiative. From March 2005 through November 2008, Solomon served in then-U.S. Senator Barack Obama's Office as Legislative Counsel for poverty, economic development, government reform, tax, budget, banking and finance issues.  Previously, Mr. Solomon was Associate Dean at Yale Law School overseeing finance and administration.  Solomon was also a consultant with McKinsey & Company, serving global financial institutions, media companies and non-profit organizations.

On the urban economic development front, Solomon served as Chairman of the New Haven Port Authority and as Treasurer to revitalize New Haven's world-renowned Shubert Theater.  He directed an initiative to increase small and minority business contracting with the City of New Haven, and worked to create jobs through technology transfer by Yale University. In New York, Solomon advised the CEO of the Upper Manhattan Empowerment Zone, a $300 million economic development fund, and served as Acting Director of its small business lending subsidiary to restructure problem loans.  From his time living in South Africa, Solomon co-authored two chapters in "`No More Tears…': Struggles for Land in Mpumalanga, South Africa" (Africa World Press, 1997).  Solomon received his B.A. magna cum laude from Harvard College and his law degree from Yale.

As U.S. Executive Director to the AFDB, Jones will represent the United States on the African Development Bank and African Development Fund Boards to promote sustainable development in Africa.  He will be responsible for the conduct of the general operations of the AFDB including votes on loan and technical assistance proposals and deciding policy issues that guide the operations of the Bank and its overall direction.

Jones has worked in the areas of international development, business, law and finance for more than 20 years.  Over the course of his career, Jones has participated in and managed numerous financial transactions worldwide including in Africa, Asia, South America and Europe. Jones was previously a Senior Investment Officer at the Overseas Private Investment Corporation (OPIC) where he structures debt financings for small and medium enterprise projects worldwide.  Earlier at OPIC, Jones was a Manager handling business development in Africa, the Middle East, Latin America and the Caribbean and Asia. 

Jones began his professional career as an associate at the law firm of Sidley & Austin. Jones later served as a Legislative Assistant on the personal staff of United States Senator Paul Sarbanes (D-MD, ret.) handling foreign relations and banking matters.  Jones was also an international consultant advising clients on financial, debt restructuring and investment matters. Jones later served as General Counsel and head of private equity for Gravitas Capital Advisors.  Jones served on several corporate and non-profit boards of directors including most recently on the Board of Directors for Atlas Energy, Inc. (NASDQ), and earlier on the Atlas Energy Resources, LLC (NYSE) Board of Directors. Jones is a graduate of Princeton University's Woodrow Wilson School of Public and International Affairs, Harvard Law School and the George Washington University School of Business and Management.

As the new U.S. Alternate Executive Director to the IMF Board, Rediker will support the U.S. Executive Director in representing and casting the vote for the United States in the Executive Board of the IMF. He will also, with the Executive Director, advise Treasury and Administration officials on U.S. interests in the IMF including the international monetary system, international financial markets and the IMF's lending programs.

Rediker was previously the Director of the Global Strategic Finance Initiative at the New America Foundation, which focuses on the relationship between global finance, capital flows and foreign policy. Prior to his public policy work with the New America Foundation, he lived and worked in Europe for sixteen years, holding senior positions in emerging markets and telecommunications investment banking and private equity for Salomon Brothers, Merrill Lynch, Lehman Brothers and TD Capital. 

He began his career as an attorney at Skadden Arps in Washington, DC and New York. As Head of European Emerging Markets Investment Banking during the period of post-communist transition, he originated and executed pioneering transactions and oversaw the establishment and management of operations throughout Central and Eastern Europe and the former Soviet Union. He has worked closely with governments, central banks, financial institutions, and private companies on privatizations, mergers and acquisitions, and debt and equity capital markets transactions. He was named an "Emerging Markets Superstar" by Global Finance Magazine. He is a member of the Council on Foreign Relations, the International Institute for Strategic Studies and the Royal Institute of International Affairs (Chatham House), and he serves on the advisory board of the Lisbon Council in Brussels.  He is also a member of the Board of Trustees of Aidan Montessori School in Washington, DC.  He holds degrees from Vassar College and the Fordham University School of Law and also attended the John F. Kennedy School at Harvard University.

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Treasury Department Announces Pricing of
Public Offering of Warrants to Purchase
Common Stock of Signature Bank

WASHINGTON -- The U.S. Department of the Treasury announced today that it priced a secondary public offering of 595,829 warrants to purchase common stock of Signature Bank (the "Bank") at $19.00 per warrant. The aggregate net proceeds to Treasury from the offering are expected to be $11,150,940. These proceeds provide an additional return to the American taxpayer from Treasury's investment in the Bank beyond the dividend payments it received on the related preferred stock.

The closing is expected to occur on or about March 16, 2010, subject to customary closing conditions. The offering was priced through a modified Dutch auction. Deutsche Bank Securities Inc. is the sole book-running manager for the offering. This offering represents Treasury's sale of its remaining investment in the Bank.

The warrants were exempted securities under Section 3(a)(2) of the Securities Act of 1933 and were offered pursuant to an offering circular that was not required to be filed with the SEC. These securities are not deposits and are neither insured nor approved by the FDIC. A preliminary offering circular relating to the offering was made available on March 8, 2010 on Signature Bank's website at http://www.signatureny.com, and a final offering circular will be made available on the same website. The offering of the warrants may be made only by means of an offering circular. The Bank's principal executive offices are located at 565 Fifth Avenue, New York, New York 10017.

Copies of the final offering circular relating to these securities may be obtained, when available, from Deutsche Bank Securities Inc., Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, New Jersey 07311-3988, telephone: 1-800-503-4611 or by emailing prospectusrequest@list.db.com. Before you invest, you should read the offering circular and other documents the Bank has filed with the FDIC and posted on its website for more complete information about the Bank and the warrants.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

# # #

Treasury, Energy Announce Guidance for Tax Treatment of Smart Grid Investment Grants

Clarifying Determination Paves the Way for Projects to Move Forward Quickly, Creating Jobs and Delivering Smart Grid Technology to Local Communities

Washington, DC - The Department of Treasury and the Department of Energy announced today new guidance on the tax treatment for grantees receiving Recovery Act funding under the $3.4 billion Smart Grid Investment Grant program.  Under the guidance released today, the Internal Revenue Service is providing a safe harbor under section 118(a) of the Internal Revenue Code for corporations receiving funding under the program.

With the determination that Smart Grid Investment Grants to corporations are non-taxable, corporate utilities will be able to launch their investments with a clear indication of the tax status for their projects.  This decision will allow the Department of Energy to move forward quickly to finalize grant agreements over the coming weeks.

"Smart Grid Investment Grants help encourage innovation in the way we power our homes and businesses," said Treasury Assistant Secretary for Management Dan Tangherlini.  "By clarifying the tax treatment of Smart Grid Investment Grants, we are ensuring that their full impact is felt in the communities where these investments are being made."

"This is an important step toward reaching the Administration's goal of a more reliable and efficient electrical grid," said Matt Rogers, Senior Advisor to the Secretary of Energy.  "As these projects move forward, they will create thousands of new jobs and bring smart grid technologies to communities across the country."

The $3.4 billion Smart Grid Investment grant program is the largest single energy grid modernization investment in U.S. history.  Through this Recovery Act-funded program, one-hundred private companies, utilities, manufacturers, cities and other partners are receiving funding to implement a broad range of technologies that will spur the nation's transition to a smarter, stronger, more efficient and reliable electric system.  Awardees have stated that the projects will create tens of thousands of jobs, and consumers in 49 states will benefit from these investments in a stronger, more reliable grid.  Implementing the smart grid will promote energy-saving choices for consumers, increase efficiency, and foster the growth of renewable energy sources like wind and solar.

The full guidance can be viewed here.

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Treasury Department Announces Pricing of
Public Offering of Warrants to Purchase
Common Stock of Washington Federal, INC.

WASHINGTON -- The U.S. Department of the Treasury announced today that it priced a secondary public offering of 1,707,456 warrants to purchase common stock of Washington Federal, Inc. (the "Company") at $9.15 per warrant. The aggregate net proceeds to Treasury from the offering are expected to be $15,388,874. These proceeds provide an additional return to the American taxpayer from Treasury's investment in the Company beyond the dividend payments it received on the related preferred stock.

The closing is expected to occur on or about March 15, 2010, subject to customary closing conditions. The offerings were priced through a modified Dutch auction. Deutsche Bank Securities Inc. is the sole book-running manager for the offering. This offering represents Treasury's sale of its remaining investment in the Company.

The warrants were offered pursuant to an effective shelf registration statement that was filed by the Company with the Securities and Exchange Commission (the "SEC"). A preliminary prospectus supplement relating to the offering was filed with the SEC on March 8, 2010, and a final prospectus supplement will be filed by the Company with the SEC and will be available on the SEC's website at http://www.sec.gov.

Copies of the final prospectus supplement relating to these securities may be obtained, when available, from Deutsche Bank Securities Inc., Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, New Jersey 07311-3988, telephone: 1-800-503-4611 by emailing prospectusrequest@list.db.com. Before you invest, you should read the prospectus and prospectus supplement in the registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the warrants.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

# # #

March 8, 2010
TG-577

Treasury Department Issues New General License to Boost
Internet-Based Communication, Free Flow of Information in Iran,
Sudan and Cuba

WASHINGTON – The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today amended the Iranian Transactions Regulations, Sudanese Sanctions Regulations, and Cuban Assets Control Regulations to ensure that individuals in these countries can exercise their universal right to free speech and information to the greatest extent possible.  The amendments add general licenses authorizing the exportation of certain personal Internet-based communications services – such as instant messaging, chat and email, and social networking – to Iran, Sudan and Cuba.  The amendments also permit the exportation of related software to Iran and Sudan.   

"Consistent with the Administration's deep commitment to the universal rights of all the world's citizens, the issuance of these general licenses will make it easier for individuals in Iran, Sudan and Cuba to use the Internet to communicate with each other and with the outside world.  Today's actions will enable Iranian, Sudanese and Cuban citizens to exercise their most basic rights," said Deputy Treasury Secretary Neal Wolin.

The new general licenses authorize exports from the United States or by U.S. persons to persons in Iran and Sudan of services and software related to the exchange of personal communications over the Internet, including web browsing, blogging, email, instant messaging, and chat; social networking; and photo and movie sharing. Today's amendments also provide that specific licenses may be issued on a case-by-case basis for the exportation of services and software used to share information over the Internet that not covered by the general licenses.

"As recent events in Iran have shown, personal Internet-based communications like email, instant messaging and social networking are powerful tools.  This software will foster and support the free flow of information – a basic human right – for all Iranians," continued Wolin.  "At the same time as we take these steps, the Administration will continue aggressively to enforce existing sanctions and to work with our international partners to increase the pressure on the Government of Iran to meet its international obligations."

The sanctions regulations on Cuba also have been amended to include a similar authorization and statement of licensing policy for the exportation of such services to Cuba.  Unlike Iran and Sudan, the exportation of goods and technology, including software, to Cuba is separately licensed or otherwise authorized by the Commerce Department. 

Today's action follows up on the December 2009 notification submitted to Congress by the State Department of a national interest waiver under the Iran Iraq Arms Non-Proliferation Act  to authorize the exportation of free mass market software to Iran necessary for the exchange of personal communications and/or sharing of information over the Internet.

To view the final rule click here.

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Treasury Department Announces Public Offerings of Warrants to Purchase Common Stock of Washington Federal, Inc., Signature Bank and Texas Capital Bancshares, Inc.

WASHINGTON -- The U.S. Department of the Treasury today announced that it has commenced secondary public offerings of the following securities:

·         1,707,456 warrants to purchase the common stock of Washington Federal, Inc.;

·         595,829 warrants to purchase the common stock of Signature Bank; and

·         758,086 warrants to purchase the common stock of Texas Capital Bancshares, Inc.

The proceeds of these sales will provide an additional return to the American taxpayer from Treasury's investment in Washington Federal, Signature Bank and Texas Capital beyond the dividend payments it received on the related preferred stock. Each offering is expected to price through a modified Dutch auction. Deutsche Bank Securities Inc. is the sole book-running manager for these offerings.

Deutsche Bank Securities Inc., in its capacity as auction agent, has specified that each auction will commence as follows and be subject to the following minimum bid price:

During the auction period, potential bidders will be able to place bids at any price (in increments of $0.05) at or above the minimum bid price per warrant.

The auction procedures, and the exercise price, expiration and other terms of the Washington Federal warrants and the Texas Capital warrants are described in the preliminary prospectus supplements referenced below.  The auction procedures and terms of the Signature Bank warrants are described in the preliminary offering circular referenced below.   

The Washington Federal warrants and the Texas Capital warrants are each being offered pursuant to an effective shelf registration statement that has been filed by each of Washington Federal and Texas Capital with the Securities and Exchange Commission (the "SEC"). The preliminary prospectus supplements related to the offerings will be filed by Washington Federal and Texas Capital with the SEC and will be available on the SEC's website at http://www.sec.gov. The Signature Bank warrants are exempted securities under Section 3(a)(2) of the Securities Act of 1933 and are being offered pursuant to an offering circular that is not required to be filed with the SEC. The preliminary offering circular related to the Signature Bank offering will be made available on Signature Bank's website at http://www.signatureny.com.

Copies of the preliminary prospectus supplements and the preliminary offering circular, as applicable, relating to these securities may be obtained by contacting Deutsche Bank Securities Inc., Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, New Jersey 07311-3988, telephone: 1-800-503-4611 or by emailing prospectusrequest@list.db.com.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

# # #

Treasury Releases Build America Bonds Update

Build America Bonds Provide Nearly $78 Billion Nationally to Date
Report Details Cumulative, State by State Bond Issuances
Recovery Act Bond Program Boosts Economic Development

WASHINGTON – The Treasury Department today released its monthly comprehensive update on issuances of the Build America Bonds program, including state-by-state data.  The Build America Bonds program is a financing tool created by the American Recovery and Reinvestment Act to allow state and local governments to obtain much-needed funding, at lower borrowing costs, for new capital projects such as construction of schools and hospitals, development of transportation infrastructure, and water and sewer upgrades.

Build America Bonds, which are taxable bonds, are designed to appeal to a broader set of investors than traditional tax-exempt bonds. Under the Build America Bonds program, the Treasury Department makes a direct payment to the state or local governmental issuer in an amount equal to 35 percent of the interest payment on the Build America Bonds.  Potential new investors include pension funds that typically do not hold tax exempt bonds and foreign investors.  These investors have been important additions to the market for municipal debt.

"Build America Bonds have changed the landscape of the municipal bond market by opening it to a broader range of investors," said Alan B. Krueger, Assistant Secretary for Economic Policy at the Treasury Department.  "Expanding and making this program permanent, as the President proposed in the budget, will further improve the long-term functioning of the municipal bonds market." 

The Obama Administration's FY 2011 budget proposes to make Build America Bonds permanent with a 28 percent subsidy rate; this rate is estimated to be revenue neutral relative to the estimated future Federal tax expenditure for tax-exempt bonds.  The budget also proposes expanding the eligible uses of Build America Bonds to cover a wider range of municipal borrowing, including original financings for public capital projects, current refundings for public capital projects, short-term working capital, and nonprofit 501(c)(3) organization financings. 

Market reception for Build America Bonds has been very positive.  Between the program launch on April 3, 2009 and February 28, 2010:

·         There have been nearly $78 billion in Build America Bond issuances;

·         Build America Bonds now constitute about 20 percent of the municipal bonds market; and

·         There have been a total of 929 separate issues of Build America Bonds by local or state governments in 47 states.

A complete list of issuances organized by state is available here.

The data contained in this report are compiled by the Department of the Treasury using data available from Bloomberg and are not based on filings with the Internal Revenue Service. 

Table 2:  BAB Issuances and Volumes by State Between Program Inception (4/3/2009) and 2/28/2010
State	Number of Issues	Total Amount Issued ($Millions)
AK	2	160
AL	5	208
AZ	16	685
CA	76	18,059
CO	23	1,654
CT	6	885
DC	3	956
DE	1	179
FL	32	3,245
GA	7	703
HI	3	591
IA	30	497
ID	1	72
IL	109	5,052
IN	19	1,265
KS	34	999
KY	36	1,452
LA	7	532
MA	5	1,963
MD	20	1,906
MI	37	1,413
MN	58	627
MO	34	1,551
MS	2	162
NC	7	698
ND	4	25
NE	16	378
NH	2	225
NJ	16	2,791
NM	3	96
NV	11	1,837
NY	24	7,859
OH	41	2,362
OK	12	299
OR	2	22
PA	22	2,025
SC	16	479
SD	8	143
TN	15	344
TX	35	7,207
UT	23	1,494
VA	18	1,724
VT	2	50
WA	30	2,157
WI	53	910
WV	1	38
WY	2	13
Total	929	77,992

Source:  Department of Treasury calculations.  Muni total includes traditional tax exempt bonds, Build American Bonds, and other ARRA bonds.

Treasury Department Announces Pricing of Public Offerings of Warrants to Purchase Common Stock of Bank of America Corporation

The closings are expected to occur on or about March 9, 2010, subject to customary closing conditions. The offerings were priced through a modified Dutch auction. Deutsche Bank Securities Inc. is the sole book-running manager and Blaylock Robert Van, LLC, CastleOak Securities, L.P., Guzman & Company, Loop Capital Markets LLC, M.R. Beal & Company and Toussaint Capital Partners, LLC are the co-managers for the offerings. These offerings represent Treasury's sale of its remaining investment in the Company.

The warrants were offered pursuant to an effective shelf registration statement that was filed by the Company with the Securities and Exchange Commission (the "SEC"). Preliminary prospectus supplements relating to the offerings were filed with the SEC on March 1, 2010, and final prospectus supplements will be filed by the Company with the SEC and will be available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplements relating to these securities may be obtained, when available, from Deutsche Bank Securities, Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, New Jersey 07311-3988, telephone: 1-800-503-4611. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the warrants.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

###

Treasury Department Announces Public Offerings of Warrants to
Purchase Common Stock of Bank of America Corporation

WASHINGTON -- The U.S. Department of the Treasury today announced that it has commenced a secondary public offering of 150,375,940 warrants to purchase the common stock of Bank of America Corporation (the "Company") (the "A Warrants") and a secondary public offering of 121,792,790 warrants to purchase the common stock of the Company (the "B Warrants"). The proceeds of these sales will provide an additional return to the American taxpayer from Treasury's investment in the Company beyond the dividend payments it received on the related preferred stock. The offerings are expected to price through a modified Dutch auction. Deutsche Bank Securities Inc. is the sole book-running manager and Blaylock Robert Van LLC, CastleOak Securities, L.P., Guzman & Company, Loop Capital Markets LLC, M.R. Beal & Company and Toussaint Capital Partners, LLC are the co-managers for the offerings.

Deutsche Bank Securities Inc., in its capacity as auction agent, has specified that the auctions will commence at 8 a.m., Eastern Time, on March 3, 2010, and will close at 6:30 p.m., Eastern Time, on that same day (the "submission deadline"). During the auction period, potential bidders for the A Warrants will be able to place bids at any price (in increments of $0.05) at or above the minimum bid price of $7.00 per warrant, and potential bidders for the B Warrants will be able to place bids at any price (in increments of $0.05) at or above the minimum bid price of $1.50 per warrant.

The auction procedures, and the applicable exercise prices, expirations, and other terms of the warrants are described in the preliminary prospectus supplements referenced below.

The warrants are being offered pursuant to an effective shelf registration statement that has been filed by the Company with the Securities and Exchange Commission (the "SEC"). Preliminary prospectus supplements related to the offerings will be filed by the Company with the SEC and will be available on the SEC's website at http://www.sec.gov. Copies of the final prospectus supplements relating to these securities may be obtained, when available, from Deutsche Bank Securities, Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, New Jersey 07311-3988, telephone: 1-800-503-4611.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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February 26, 2010
tg568

Preliminary Report On Foreign Holdings Of U.S. Securities At End-June 2009

February 25, 2010
TG-564

Treasury Sanctions La Familia Michoacana Leadership

Action Marks First Derivative Designation Since President Identified This Violent Drug Trafficking Organization Last Year

WASHINGTON – The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today designated seven key leaders of the international drug trafficking organization La Familia Michoacana (La Familia) as Specially Designated Narcotics Traffickers (SDNTs).  Today's designation targets two principal leaders of La Familia, Nazario Moreno Gonzalez ("El Chayo") and Jose de Jesus Mendez Vargas ("El Chango"), and five of their lieutenants.  OFAC also designated as an SDNT one company owned or controlled by one of La Familia's lieutenants.  Today's action, pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act), prohibits U.S. persons from conducting financial or commercial transactions with these individuals and entity and freezes any assets the designees may have under U.S. jurisdiction.

"Today's action targets the senior leadership of La Familia Michoacana, giving further effect to the President's April 2009 identification of this organization for sanctions," said OFAC Director Adam J. Szubin. "La Familia is one of Mexico's newest and most violent drug cartels. We will continue to aggressively pursue this dangerous organization and deny La Familia's leadership, businesses and operatives access to the U.S. financial system."

La Familia, identified by President Obama as a significant foreign narcotics trafficker in April 2009, is an extremely violent drug trafficking organization operating primarily in the State of Michoacán, Mexico.  It is a compartmentalized organization heavily involved in narcotics trafficking, kidnapping, extortion, and other criminal activities. La Familia is known for its extreme form of brutal violence – to include execution-style killings and beheadings.  Today's action is OFAC's first derivative designation against La Familia since the President identified it as a significant foreign narcotics trafficker.

Nazario Moreno Gonzalez, La Familia's spiritual leader, was indicted for drug trafficking in a U.S. district court in Texas in 2003, and Jose de Jesus Mendez Vargas is responsible for smuggling large shipments of methamphetamine and cocaine into the United States. OFAC also today designated five individuals working immediately below or on behalf of La Familia's principal leaders in Mexico, including Dionicio Loya Plancarte ("El Tio"), considered the current second-in-command, and Servando Gomez Martinez ("La Tuta"), another top leader of the organization believed to be responsible for the July 2009 murders of 12 Mexican federal police officers.  OFAC also designated Enrique Plancarte Solis ("La Chiva"), Jose Arnoldo Rueda Medina ("La Minsa"), Nicandro Barrera Medrano, and trucking company Transportadora Purepecha S.A. de C.V, which is owned or controlled by Medrano.

Today's action is due in part to OFAC's cooperation with the Mexico Country Office of the Drug Enforcement Administration (DEA) and DEA's Special Operations Division and is part of ongoing efforts under the Kingpin Act to apply financial measures against significant foreign narcotics traffickers worldwide.  Internationally, more than 500 businesses and individuals associated with 82 drug kingpins, 37 of which are based in Mexico, have been designated pursuant to the Kingpin Act since June 2000. Penalties for violations of the Kingpin Act range from civil penalties of up to $1.075 million per violation to more severe criminal penalties.  Criminal penalties for corporate officers may include up to 30 years in prison and fines up to $5 million.  Criminal fines for corporations may reach $10 million.  Other individuals face up to 10 years in prison and fines pursuant to Title 18 of the United States Code for criminal violations of the Kingpin Act.

###

REPORTS

• La Familia Michoacana Leadership

Treasury Issues Debt Management Guidance on the
Supplementary Financing Program

WASHINGTON –The U.S. Department of Treasury today issued the following statement on the Supplementary Financing Program (SFP):

"Treasury anticipates that the balance in the Treasury's Supplementary Financing Account will increase from its current level of $5 billion to $200 billion.  This will restore the SFP back to the level maintained between February and September 2009. 

This action will be completed over the next two months in the form of eight $25 billion, 56-day SFP bills.  Starting tomorrow, SFP auctions will be held each Wednesday at 11:30 a.m. EST, unless otherwise noted."  

###

Obama Administration Details Healthy Food Financing Initiative

Philadelphia -- The Obama Administration today released details of an over $400 million Healthy Food Financing Initiative, which will bring grocery stores and other healthy food retailers to underserved urban and rural communities across America. The initiative was announced today in Philadelphia by Treasury Secretary Tim Geithner and Agriculture Secretary Tom Vilsack. The two cabinet members appeared with First Lady Michelle Obama, who recently launched the Let's Move! campaign to solve the epidemic of childhood obesity within a generation. The initiative is a partnership between the Departments of Treasury, Agriculture, and Health and Human Services.

The Healthy Food Financing Initiative will promote a range of interventions that expand access to nutritious foods, including developing and equipping grocery stores and other small businesses and retailers selling healthy food in communities that currently lack these options. Residents of these communities, which are sometimes called "food deserts" and are often found in economically distressed areas, are typically served by fast food restaurants and convenience stores that offer little or no fresh produce. Lack of healthy, affordable food options can lead to higher levels of obesity and other diet-related diseases, such as diabetes, heart disease, and cancer.

Through this new multi-year Healthy Food Financing Initiative and by engaging with the private sector, the Obama Administration will work to eliminate food deserts across the country within seven years. With the first year of funding, the Administration's initiative will leverage enough investments to begin expanding healthy foods options into as many as one-fifth of the nation's food deserts and create thousands of jobs in urban and rural communities across the nation.

To help community leaders identify the food deserts in their area, USDA recently launched a Food Environment Atlas (www.ers.usda.gov/FoodAtlas/). This new online tool allows for the identification of counties where, for example, more than 40 percent of the residents have low incomes and live more than one mile from a grocery store. Nationwide, USDA estimates that 23.5 million people, including 6.5 million children, live in low-income areas that are more than a mile from a supermarket. Of the 23.5 million, 11.5 million are low-income individuals in households with incomes at or below 200 percent of the poverty line. Of the 2.3 million people living in low-income rural areas that are more than 10 miles from a supermarket, 1.1 million are low-income.

"Our effort to improve access to healthy and affordable food is a critically important step toward First Lady Michelle Obama's goal to solve the challenge of childhood obesity within a generation, said Agriculture Secretary Vilsack.  "The Healthy Food Financing Initiative will enhance access to healthy and affordable choices in struggling urban and rural communities, create jobs and economic development, and establish market opportunities for farmers and ranchers."           

Effective local programs, such as those in Pennsylvania, have shown that well-targeted financial and technical assistance can create viable businesses that provide healthier options in communities that lack access to healthy foods.  These investments not only improve food options, but also create jobs, help revitalize distressed communities, and, importantly, open up new markets for farmers to sell their products, which can provide an economic boost to rural America. By better connecting producers and consumers, we can build a stronger connection between cities and rural parts of the country and help create new opportunities for farmers and ranchers. This initiative is part of a broader Obama Administration commitment to promoting economic recovery, including support for small businesses and job creation. It is also part of the Administration's efforts to revitalize neighborhoods and communities by employing place-based approaches--strategies that target the prosperity, equity, sustainability and livability of places.

"It's been a tough year for America, but for our middle class and distressed communities it's been a tough decade," said Secretary Geithner. "We're here to make sure that in America, where a child grows up doesn't determine whether they have access to a better--healthier--future. By introducing powerful incentives for private investors to take a chance on projects – like a new, healthier grocery store – we can make that difference for America's children, while creating new jobs and services in their communities."

Through the joint initiative, which was included in the President's Budget for 2011, Treasury, USDA, and HHS would make available more than $400 million in financial and technical assistance to community development financial institutions, other nonprofits, and businesses with sound strategies for addressing the healthy food needs of communities. The initiative will make available a mix of federal tax credits, below-market rate loans, loan guarantees, and grants to attract private sector capital that will more than double the total investment. Federal funds will support projects ranging from the construction or expansion of a grocery store to smaller-scale interventions such as placing refrigerated units stocked with fresh produce in convenience stores.

"Encouraging people to choose fresh, nutritious food is important," said Health and Human Services Secretary Kathleen Sebelius.  "But to achieve that goal that kind of food must be available, and in far too many parts of our country -- both urban and rural communities -- that's not the case.  This collaborative initiative is a creative way to help solve that problem, while at the same time working to strengthen the economy of low-income communities through business development and job creation."

Each of the three agencies brings a particular expertise and set of resources to the Healthy Food Financing Initiative. Specifically:

• The Treasury Department will support private sector financing of healthy foods options in distressed urban and rural communities. Through the New Markets Tax Credit (NMTC) and financial assistance to Treasury-certified community development financial institutions (CDFIs), Treasury has a proven track record in expanding access to nutritious foods by catalyzing private sector investment. The Healthy Foods Financing Initiative builds on that track record, with $250 million in authority for the NMTC and $25 million for financial assistance to CDFIs devoted to helping finance healthy food options. Treasury's CDFI Fund has a long history of supporting these kinds of investments, including: providing funding for the landmark Pennsylvania Fresh Food Financing Initiative that has brought 68 grocery stores to underserved communities; the Roberts Fresh Market, a full-service supermarket in an underserved area of New Orleans that was devastated by Hurricane Katrina; and a new Super Giant in Washington, D.C., the only grocery store in the Anacostia neighborhood and now one of Giant's most successful stores.
• The Department of Agriculture specializes in improving access to healthy foods through nutrition assistance programs, creating business opportunities for America's farmers, and promoting economic development in rural areas. USDA's proposed funding level of $50 million will support more than $150 million in public and private investments in the form of loans, grants, promotion, and other programs that can provide financial and technical assistance to enhance access to healthy foods in under-served communities, expand demand and retail outlets for farm products, and increase the availability of locally and regionally produced foods. USDA has a solid track record of supporting successful farmers markets, and has also invested in grocery stores and creating agricultural supply chains for them, such as in the People's Grocery project in Oakland, CA.
• The Department of Health and Human Services (HHS) specializes in community-based efforts to improve the economic and physical health of people in distressed areas. HHS will dedicate up to $20 million in Community Economic Development program funds to the Healthy Food Financing Initiative. Through the CED program, HHS will award competitive grants to Community Development Corporations to support projects that finance grocery stores, farmers markets, and other sources of fresh nutritious food. These projects will serve the dual purposes of facilitating access to healthy food options while creating job and business development opportunities in low-income communities, particularly since grocery stores often serve as anchor institutions in commercial centers. HHS has supported fresh food projects in the past, such as the Plaza del Valle in Panorama City, CA.

###

February 19, 2010
TG-554

Treasury Department Statement on
Financial Action Task Force Identifications

Treasury Announces Intent to Sell Warrant Positions in Public Dutch Auctions

Each of these banks has fully repurchased Treasury´s preferred stock investment. The warrant sales anticipated over the next month, if consummated in full, would represent Treasury´s disposition of its remaining holdings in these banks. The proceeds of these sales will provide an additional return to the American taxpayer from Treasury´s investments in these banks beyond the dividend payments it received on the related preferred stock.

Treasury intends to sell the warrants through public offerings. These offerings will be executed using a modified Dutch auction methodology that establishes a market price by allowing investors to submit bids at specified increments above a minimum price specified for each auction. More detailed guidance for the auctions will be available in prospectuses that will be filed or offering circulars that will be made available by the warrant issuers prior to the opening of each auction. Treasury expects to conduct similar auctions in the future for other warrant positions it holds in banks that have repaid CPP.

Deutsche Bank Securities Inc. (Deutsche Bank) has been retained as the auction agent and sole bookrunning manager for these offerings. In this role, Deutsche Bank will accept bids and identify a clearing price for each auction. If investors do not have an account with Deutsche Bank, they may be able to participate in the auction through their own brokers, as a network of several dozen brokerage firms will be invited to aggregate suitable client orders and submit them to Deutsche Bank. The warrants are complex securities that are not suitable for all investors.

Prospective investors will be able to obtain copies of the prospectuses or offering circulars, as applicable, relating to these securities, when available, from Deutsche Bank Securities Inc., Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, New Jersey 07311-3988, telephone: 1-800-503-4611.

###

February 18, 2010
TG-552

Treasury Secretary Geithner Announces Proposals to Extend and Enhance the New Markets Tax Credit

FY 2011 Budget Provides $5 Billion for Credit to Speed Recovery in Hardest Hit Communities

DURHAM – Demonstrating the Administration's commitment to economic recovery in America's hardest hit communities, Treasury Secretary Tim Geithner traveled to Raleigh-Durham today to meet with individual and small business recipients of New Markets Tax Credits (NMTC) to discuss how the credits can be used to attract additional investments to help revitalize distressed communities.

After touring the facilities at the Golden Belt Complex in Durham, a six-building, mixed-use complex that was renovated with private financing made possible by the NMTC, Secretary Geithner participated in a roundtable discussion hosted by Self Help Ventures Fund, a Community Development Financing Institution (CDFI) that invested $12 million in the renovation of the Golden Belt complex, including more than $8 million in capital it attracted with the help of the NMTC.  During the roundtable, the group discussed the challenges distressed communities face in attracting new investments, and how the NMTC and other financing tools can help spur job creation and economic revitalization.  In remarks made following the roundtable, Secretary Geithner announced the President's proposal to improve, extend and broaden the NMTC under the FY 2011 Budget. 

"Distressed communities and their small businesses have a hard time attracting investments even in the best of times," said Secretary Geithner.  "The New Markets Tax Credit helps these communities attract new investors and ensure they stay invested long enough for businesses to overcome obstacles and grow.  That's why the President expanded the New Markets Tax Credit through the Recovery Act last year and why we're seeking to reform, extend and broaden the reach of these credits going forward."

NMTC are designed to spur growth in distressed communities by catalyzing private sector investments that create jobs and enhance access to capital for small businesses and community development.  To restore demand and broaden the credit's appeal, Secretary Geithner announced today that the President is asking Congress to change the NMTC so it can be used to offset not only investors' regular federal income taxes but also the taxes they owe under the Alternative Minimum Tax (AMT), including where NMTC allocations have been made but where money has not yet been invested. 

CDFI Fund Director Gambrell said, "These latest enhancements are a part of a broader commitment on the part of the Obama Administration to increasing opportunities for small businesses and community development where it is needed most.  Allowing the credit to off-set the AMT will help this tool to speed recovery in the hardest hit communities by greatly increasing its ability to attract private investors."

Under the Recovery Act, the Obama Administration expanded the allocation for the credits to $5 billion for each of 2008 and 2009.  Secretary Geithner today highlighted the proposal in the President's FY 2011 Budget to provide for an additional $5 billion in New Markets Tax Credits allocation in 2010 and still another $5 billion in 2011.  In addition, Treasury and the IRS are developing guidance to help provide investors greater certainty whether they will qualify for and be able to benefit from the credit.  The Secretary today stressed that Treasury is committed to making further enhancements to the NMTC to encourage greater investment in small businesses.

The NMTC has been highly successful, with recipients investing more than $12 billion in distressed communities through 2008, helping to create, save or support hundreds of thousands of local jobs.  The NMTC has helped finance a variety of activities in distressed urban and rural communities throughout the United States, including alternative energy companies, charter schools, health care facilities, timberlands, child care providers, supermarkets, manufacturers, processors, distributors, and business incubators.

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REPORTS

• Fact Sheet