Capital Purchase Program

Treasury and FDIC Developments

On November 4, Treasury gave its First Tranche Report to Congress, as required by the Emergency Economic Stabilization Act. In this report, Treasury described measures taken under the Capital Purchase Program and noted both recent signs of market improvements and longterm credit market challenges. Treasury also indicated a willingness to establish additional programs under the TARP, particularly in connection with mortgage loan modifications.  Treasury Tranche Report. 

On November 7, Treasury posted a solicitation for equity, debt and warrants asset management services under the Capital Purchase Program. Submissions are due on November 13.  Treasury Press Release.

On October 31, Treasury released the form documentation for the Capital Purchase Program, including a term sheet, a form of Securities Purchase Agreement, a form of Letter Agreement between the participating institution and Treasury and forms of senior preferred stock and warrants.  CPP Documentation.

 The FDIC has extended the opt-out deadline for the Temporary Liquidity Guarantee Program to December 5, 2008, in order to provide institutions with additional time to review the Interim Rule and make a determination regarding participation. (Deadline for comments on the Interim Rule is November 13.)  FDIC Press Release.