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
Read the Full Report Troubled Asset Relief Program: One Year Later, Actions Needed to Address Remaining Transparency and Accountability Challenges (GAO-10-16)
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.
This document also presents updated information on the 52 financial agency agreements, contracts, blanket purchase agreements, and interagency agreements entered into by Treasury between October 10, 2008, and September 18, 2009, to support its implementation of TARP. As of this time period, Treasury has entered into seven financial agency agreements and awarded 39 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 six interagency agreements. If applicable, the contractor is noted as minority- or women-owned or other small business; completed; or subject to Treasury’s TARP conflict of interest regulations (under 31 C.F.R. Part 31). 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 June e-supplement (GAO-09-707SP). Since our June 2009 report, one contract was reclassified by Treasury as an interagency agreement.
To learn more, read our report GAO-10-16, Troubled Asset Relief Program: One Year Later, Actions Needed to Address Remaining Transparency and Accountability Challenges. We conducted our work from July 2009 to October 2009, in accordance with all sections of GAO’s Quality Assurance Framework that are relevant to our objectives. The framework requires that we plan and perform the engagement to obtain sufficient and appropriate evidence to meet our stated objectives and discuss any limitations in our work. We believe that the information and data obtained, and the analysis conducted, provide a reasonable basis for our findings.
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