Capital Alternatives for Financial Institutions: Treasury's TARP Capital Purchase Program


On October 3rd, President Bush signed into law the Emergency Economic Stabilization Act of 2008 (Act), which authorized the Treasury Secretary (Treasury) to establish the Troubled Assets Relief Program (TARP) to purchase “troubled assets.” On October 14th, the TARP Capital Purchase Program (CaPP), through which Treasury makes capital investments in banking institutions, was announced as the first TARP program. Please also see our companion article on the newest Treasury capital program, announced February 25, 2009, the Capital Assistance Program.

Below we discuss the CaPP and the potential impact on capital-raising by financial institutions.

Please see full bulletin for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:


Morrison & Foerster LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.