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The Emergency Economic Stabilization Act of 2008 (EESA):Summary, Analysis and Implementation

October 09, 2008

By Kevin L. Petrasic, Benjamin Shreck and Anne C. Loomis

I. OVERVIEW OF THE EESA

On October 3, 2008, the President signed into law the Emergency Economic Stabilization Act of 2008 (EESA), Public Law No. 110-343. Passage of a modified EESA bill in the Senate on October 1 followed the Houses initial rejection of the legislation on September 29.  The addition of numerous provisions in the Senate, including a temporary increase in FDIC deposit insurance coverage to $250,000 (not accompanied by a premium increase based on the new coverage amount) and various tax reforms previously adopted by the House (i.e, Alternative Minimum Tax relief and clean energy incentives) shored up a fractured House that ultimately passed the legislation on October 3 with a relatively comfortable margin of 263-171.  Certainly, the fallout in the financial markets of the initial House vote earlier in the week also had an impact in causing many House members to reconsider their earlier rejection of the legislation.