Troubled Asset Relief Program:
Capital Purchase Program Transactions for October 28, 2008, through May 29, 2009, and Information on Financial Agency Agreements, Contracts, Blanket Purchase Agreements, and Interagency Agreements Awarded as of June 1, 2009 (GAO-09-707SP, June 2009), an e-supplement to GAO-09-658
GAO-09-707SP, Jun 17, 2009
This is an E-supplement to GAO-09-658. It presents a listing of capital purchases made in qualifying financial institutions (QFI) by the Department of the Treasury's (Treasury) Office of Financial Stability under the Capital Purchase Program (CPP). CPP is one of the programs Treasury created under its Troubled Asset Relief Program (TARP) authorities and is intended to provide QFIs with additional capital through purchases of senior preferred stock, subordinated debt, and warrants to help stabilize the QFIs by strengthening their capital base and U.S. financial markets by increasing the flow of credit to U.S. businesses and consumers. On October 14, 2008, Treasury established CPP and announced that it would allocate $250 billion of the $700 billion of the TARP funds to U.S. QFIs through purchases of preferred stock and subordinated debt. Of the $250 billion, Treasury approved $125 billion in capital purchases for nine of the largest public QFIs considered by the federal banking regulators and Treasury to be systemically significant to the operation of the financial system. (Ten billion dollars of the $125 billion was allocated for the purchase of one bank's preferred stock, but was not paid because the settlement of the purchase was pending completion of its merger with another bank.) The remaining $125 billion was made available for additional QFIs. In March 2009, Treasury adjusted its allocation for CPP from $250 billion to $218 billion. Treasury noted that the downward adjustment reflects the estimated funding needs of the program based on participation to date and the money it expects to receive from participants that repay their CPP investment. For October 28, 2008, through May 29, 2009, Treasury made capital purchases of $199.4 billion in 613 QFIs. These purchases were made in QFIs of various sizes (in terms of total assets) and geographic locations. Total assets of participating QFIs ranged from about $18 million to more than $2 trillion. As of May 29, 2009, Treasury had disbursed about 91 percent of the $218 billion. Capital purchases ranged from $301,000 to $25 billion per institution and represented investments in state-chartered and national banks and bank holding companies located in many states, the District of Columbia, and Puerto Rico. For standardized terms of the various types of QFIs (publicly held, privately held, S-corporations, and mutual institutions) that are eligible to participate in CPP, see GAO reports GAO-09-161, GAO-09-296, and GAO-09-658. This document also presents updated information on the 44 financial agency agreements, contracts, blanket purchase agreements, and interagency agreements entered into by Treasury between October 10, 2008, and June 1, 2009, to support its implementation of TARP. As of this time period, Treasury has entered into seven financial agency agreements and awarded 33 contracts and blanket purchase agreements to acquire a range of services in support of TARP administration and operations. In addition, Treasury is utilizing contractor support for internal controls, information technology, and financial advisory services through four interagency agreements. This document is based on our analysis of Treasury information and includes both new contracts and agreements and updates to existing contracts and agreements made since our March e-supplement GAO-09-522SP.