This story appeared in Bank Digest.
A GAO study of the Capital Purchase Program (CPP) concluded that, while repayments, dividends and interest from institutions participating in the CPP have exceeded the program's original investment disbursements, the number of missed payments has increased over the life of the program. As of Nov. 30, 2011, the number of institutions that had missed their quarterly payments rose to 158, a marked increase from eight in February 2009, even though CPP had fewer participants. The number of CPP institutions designated as problem banks--that is, demonstrating financial, operational, or managerial weaknesses that threatened their continued financial viability--also rose from 47 in December 2009 to 130 in December 2011.
The GAO recommended that, to provide Congress and the public with more transparent and comprehensive information on institutions remaining in CPP. and to enhance its reporting, the Secretary of the Treasury should consider analyzing and reporting on remaining and former CPP participants separately.