Troubled Asset Relief Program:
Capital Purchase Program Transactions for October 28, 2008, through September 25, 2009, and Information on Financial Agency Agreements, Contracts, Blanket Purchase Agreements, and Interagency Agreements Awarded as of September 18, 2009 (GAO-10-24SP, October 2009), an e-supplement to GAO-10-16
GAO-10-24SP: Published: Oct 8, 2009. Publicly Released: Oct 8, 2009.
- Full Report:
This is an e-supplement to GAO-10-16. This document 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. These purchases help to stabilize (1) the QFIs by strengthening their capital base and (2) the 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 it would allocate $250 billion of the $700 billion in 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 until later 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. From October 28, 2008, through September 25, 2009, Treasury made capital purchases of $204.6 billion in 685 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 $10.7 million to more than $2 trillion. As of September 25, 2009, Treasury had disbursed about 94 percent of the $218 billion allocated to CPP. 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. Sources for information included in this e-supplement include Treasury's Web site listing of CPP transactions that have been funded (date funded, bank name, state located and amount funded), the Securities and Exchange Commission's electronic filing database Interactive Data Electronic Applications (forms 10-Ks and 10-Qs), iBanknet.com, and company press releases for total assets.