NEWS UPDATE: Day Pitney LLP Updated Commentary Available on Federal "Economic Recovery and Corporate Accountability Act of 2008"and Republican "Economic Rescue Principles"

Business Wire, Sept 27, 2008

Day Pitney's Distressed Assets Group team are available for media interviews to discuss implications of proposed House and Senate legislative updates this weekend.

NEW YORK -- Congress is currently considering updated legislation, the "Economic Recovery and Corporate Accountability Act of 2008" (TARP) to address the credit crisis with a number of markedly different additions to the recommendations circulated earlier this week, observes a team of Day Pitney lawyers including Frank E. Lawatsch Jr. (New York) of the Distressed Assets Practice Group and others from its Washington DC and Boston practices.

Also in play and announced today were additional Republican "Economic Rescue Principles" issued from Senator John McCain (R-AZ) and fellow Congressional Republicans, who are now negotiating the current draft of the bill with their own proposals.

"I think that the original version proposed by U.S. Treasury Secretary Henry Paulson had the potential to work and build confidence in the market,"said Lawatsch. "Although it may have needed additional revisions and even supplementation with a capital injection process that may mimic the 30s, it could have worked. The newest version seems to be loaded with additions that are beside the intent of the legislation package."

The new draft includes provisions for a systematic homeowner assistance program, including modification of loans secured by residences and availability of foreclosed properties to states and localities.

The legislation also sets certain criteria for standards to be set by the Secretary for executive compensation for all financial Institutions seeking to sell assets through TARP, including limits on incentive compensation. The legislation also recommends the setting of additional standards regarding corporate governance for Financial Institutions, in which the Sectary makes a direct purchase from an individual Financial Institution, including shareholder voting rights for directors of such Financial institutions and limits on severance compensation.

Lawatsch stated, "The legislation under review is supposed to unclog the arteries of commerce, but this latest iteration of the legislation may not accomplish this goal."

Full summaries of the latest updates to the House and Senate Discussion Draft Bills relating to the Troubled Assets Relief Program are available on the firm's website at http://www.daypitney.com in the newsroom. Updates will be posted to the Day Pitney site as the legislation progresses.

About Day Pitney LLP

Day Pitney LLP, formed by the January 1, 2007 merger of Day, Berry & Howard LLP and Pitney Hardin LLP, is a full-service law firm with approximately 400 attorneys operating in offices in New York, New Jersey, Connecticut, Boston, and Washington, D.C. The firm offers clients strong corporate and litigation practices, with experience on behalf of large national and international corporations as well as emerging and middle market companies and individuals. Day Pitney's practice areas include Energy and Utility Law, White Collar Defense and Internal Investigation, Bankruptcy and Creditors' Rights and Employee Benefits and Executive Compensation. www.daypitney.com.