The federal government and its agencies have taken, and continue to take, a variety of steps to thaw credit markets, restore confidence in financial institutions, and stimulate the economy. Secretary of the Treasury Henry M. Paulson remarked that there is no “playbook” for responding to the turmoil in the economy. Federal actions are by no means limited to banks and credit unions. The crisis extends to other financial organizations and other parts of the world economy due to the seemingly ubiquitous presence in investment portfolios of mortgage-backed securities and the instruments insuring those securities, credit default swaps.
Federal stimulus programs, policies and rescue packages have come rapidly and on a grand scale. Programs have been announced and then changed or abandoned as the federal government searches for the most effective use of its resources. Though the government has done much thus far, there will be more initiatives to come as ideas are translated into action and a new U.S. President implements his own national economic policies.
The Emergency Economic Stabilization Act of 2008 (“EESA”) was passed on October 3, 2008 and is one of the most notable efforts, thus far, to stabilize the credit markets and restore investor confidence. The purpose of EESA is to restore liquidity and stability to the U.S. financial system and to ensure that the newly granted authority is used in a manner that:

• a) protects home values, college funds, retirement accounts, and life savings;
• b) preserves homeownership and promotes jobs and economic growth;
• c) maximizes overall returns to the taxpayers;
• d) provides public accountability for the exercise of the new authority.