Two of the more commonly discussed programs that Treasury implemented pursuant to its discretion under TARP, the Capital Purchase Program (the “CPP”) and the Capital Assistance Program (the “CAP”), have been closed.
According to the Treasury’s FAQs, as of December 31, 2009, the Treasury will not make any additional investments under the CPP. Over 700 institutions participated in the CPP, representing institutions from every state, except Montana and Vermont, and from Puerto Rico and Washington D.C. California’s institutions were most highly represented, with 72 institutions receiving CPP funds. Illinois and Missouri followed with 47 and 32 institutions, respectively, receiving CPP funds.
Although Treasury Secretary Geithner has extended TARP generally to October 3, 2010 and President Obama previously announced an that initiative would be developed for small community banks, there is currently no Treasury program aimed at providing capital support for community banks.
The CAP, which was intended to provide capital support to financial institutions in conjunction with the stress tests, was closed on November 9, 2009, without making any investments.
We will provide an update if the Treasury develops and implements any new program.