CCH Financial Reform News Center

Treasury Releases Latest Capital Purchase Program Transactions

This story appeared in Bank Digest.

The Treasury Department has released the latest transactions completed under its Capital Purchase Program (CPP). As of April 7, 2010, the Treasury has received $135,839,721,000 in capital repayments which brings the Treasury’s CPP investment amount to $66,725,489,320. In addition, $4,397,678,195 in warrant proceeds have been repurchased by financial institutions or sold by the Treasury as part of a registered public offering of the warrants issued by the financial institution.

CAP for Funding “Stress Test”Institutions to Close

This story appeared in Bank Digest.

The Treasury Department has announced that the Capital Assistance Program (CAP), which was set up to provide a mechanism for additional taxpayer support in financial institutions subject to the Supervisory Capital Assessment Program (SCAP), will close on Nov. 9, 2009, with no investments having been made.

Registered Lobbyist Contact Disclosure Forms Released

By Serena Lynn, Editor, the CCH Federal Banking Law Reporter and Bank Digest.

In its efforts for transparency and accountability in the Troubled Assets Relief Program (TARP), the Treasury Department has released the following Registered Lobbyist Contact Disclosure Forms. The form is completed by executive branch employees who are contacted by registered lobbyists regarding EESA. The report includes a written description of each contact, the date and time of the contact and the names of the registered lobbyists and the employees with whom the contact took place.

 American Bankers Association — Letter to express support of the specific recommendations to help well-managed, viable banks address their capital needs.

American Bankers Association —Forwarding of a letter sent to Treasury Secretary Tim Geithner encouraging the Treasury to implement the Capital Assistance Program in a way that helps community banks.

Latest FSOB Minutes Released

This story appeared in Bank Digest.

The Financial Stability Oversight Board (FSOB) has released the minutes from its meeting held on May 28, 2009. Discussion during the meeting focused on the Supervisory Capital Assessment Program (SCAP), the Capital Assistance Program (CAP), the Term Asset-Backed Securities Loan Facility (TALF), the Home Affordable Modification Program (HAMP), and the Automotive Industry Financing Program (AIFP).

In regards to the SCAP, the Board discussed the reviewed the status of the efforts of all institutions subject to the SCAP in raising capital from private sources, issuing nongovernmental guaranteed debt, and taking other steps to improve their capital position.

April Monthly Bank Lending Survey Released

This story appeared in Bank Digest.

The Treasury Department has announced the release of the results from its monthly bank lending survey for April with data from the top 21 recipients of government investments through the Capital Purchase Program (CPP). The April survey, which includes new information on small business lending that will be reported in all surveys going forward, found a slight decline in outstanding loan balances and modest deceleration of new loan originations in the 21 banks surveyed.

Capital Assessments to Begin for Large U.S. Banks

As part of the Capital Assistance Plan (CAP), the federal banking agencies are beginning to conduct forward-looking economic assessments of large U.S. banking organizations. These assessments will be done on an interagency basis as a coordinated supervisory exercise to ensure they are carried out in a timely and consistent manner. Supervisors will work with institutions to estimate the range of possible future losses and the resources to absorb such losses over a two-year period. The agencies have also issued a set of FAQs with additional details about the assessment process.

http://www.federalreserve.gov/newsevents/press/bcreg/20090225a.htm

Treasury Releases Details on CAP

The Treasury Department has released the terms and conditions for the Capital Assistance Program (CAP) which is a core element of the Obama Administration's Financial Stability Plan. The purpose of the CAP is to restore confidence throughout the financial system that the nation's largest banking institutions have a sufficient capital cushion against larger than expected future losses, should they occur due to a more severe economic environment, and to support lending to creditworthy borrowers.

Along with the terms and conditions, the Treasury also released a white paper which discusses the CAP’s role in the Financial Stability Plan, as well as a set of Frequently Asked Questions (FAQs).

http://www.ustreas.gov/press/releases/tg40.htm