This story appeared in Bank Digest.
The Government Accountability Office has issued a report on the status of the Capital Purchase Program, the financial condition of institutions remaining in the program, and the Treasury Department's strategy for winding down the program. According to the GAO, the CPP was established as the primary means of restoring stability to the financial system under the Troubled Asset Relief Program.
The report stated that the CPP has largely wound down and that Treasury's returns on CPP investments surpassed the original amount disbursed. The GAO said that as of Feb. 29, 2016, 16 of the 707 institutions that originally participated in CPP remained in the program, and most of these remaining institutions have continued to exhibit signs of financial weakness. The report also said that Treasury expects most remaining CPP institutions to exit through restructurings but has not set time frames for winding down the program.