Two big accounting firms chosen for rescue program

Tue Oct 21, 2008 9:32 AM EDT

The government has selected two major accounting firms to help it manage the $700 billion rescue program for the financial system.

The Treasury Department said Tuesday it had chosen PricewaterhouseCoopers to be the auditor for the program. Ernst & Young will provide general accounting support.

The two firms will work on the part of the rescue program that is handling the purchase of troubled assets from banks as a way of encouraging them to resume more normal lending.

Treasury said that Ernst & Young will be paid $492,006.95 initially while Pricewaterhouse Coopers will be paid $191,469.27 for its services initially. The two contracts last until Sept. 30, 2011.

In a statement, Treasury said that the two firms will help the department with accounting and internal control services that will be needed "to administer the complex portfolio of troubled assets the department will purchase, including whole loans and mortgage-backed securities."

The govenrment still must select the five to 10 asset management firms that will actually run the program. Those selections could come as soon as this week.

Last week, Treasury Secretary Henry Paulson announced that the government would use $250 billion of the $700 billion rescue program to make direct purchases of bank stock as a way of boosting the banks' capital reserves. That will leave $100 billion of the initial $350 billion in the first phase of the program to purchase troubled assets.

2 Votes
Enjoy this article? Help vote it up the 'Vine.

Published to:

Martin Crutsinger's Column, All of Newsvine
Groups: none
Regions: none

Public Discussion (2)

What's this?

Who's leading the conversation?

This visualization below allows you to see the impact that each user has on the current conversation. The top row contains the group of users who have had the most impact, the 2nd row the group of users who have had the 2nd most impact (et cetera). Users with similar impact are grouped together, and the average score of the group is shown to the left of the group. The author of the article is also shown on the left, in their corresponding group. Each user's score is based on the number of comments the user has made plus the number of votes their comments have received. The scores are calculated relative one another, so while their absolute value is not particularly important, their relative difference does indicate a larger difference in impact on the conversation.

0.5

{"commentId":3605771,"authorDomain":"cyan412000"}

cyan412000

wonder how much the fee is?

{"commentId":3605771,"threadId":"394623","contentId":"2022962","authorDomain":"cyan412000"}

#1 - Tue Oct 21, 2008 10:12 AM EDT

{"commentId":3606431,"authorDomain":"lindalovelee"}

Ms Lovelee

This is exactly what Senator Clinton was referring to yesterday in Orlando Florida. The Republicans are allowing the Bulls to Clean the China Closet.

Socialism is alive and well in our financial bail out of Wall St. and McCain is running around claiming Obama wants to "Spread the Wealth" but Burnake is about to approve more "FREE MONEY" to everyone including those who do not pay taxes for the second time this year.

IS THIS A JOKE? How can we stop this from happening? The little bit of money they give away is not going to help those who are about to lose their houses or health insurance because they lost a job.

This needs to be brought into the Media forfront as Socialism is being introduced not by Obama but by the current Republican Administration.

{"commentId":3606431,"threadId":"394623","contentId":"2022962","authorDomain":"lindalovelee"}

#2 - Tue Oct 21, 2008 10:46 AM EDT

{"canLink":false,"threadId":"394623","isPrivate":false}

Fed announces new plan to help money market funds	Associated Press	Tue Oct 14	8
White House to banks: Start lending now	Associated Press	Tue Oct 21	6
Paulson says stock purchases should make money	Associated Press	Thu Oct 16	6

Backyard

Two big accounting firms chosen for rescue program

Published to:

FUN STUFF:

COMPANY STUFF:

LEGAL STUFF: