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Report to Congressional Committees: Capital Purchase Program

Report to Congressional Committees: Capital Purchase Program

          
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About the Book

Created in 2008, CPP was the primary initiative under TARP to help stabilize the financial markets and banking system by providing capital to qualifying regulated financial institutions through the purchase of senior preferred shares and subordinated debt.Under CPP, qualified financial institutions were eligible to receive an investment of between 1 and 3 percent of their risk-weighted assets, up to a maximum of $25 billion. Rather than purchasing troubled mortgage-backed securities and whole loans, as initially envisioned under TARP, Treasury used CPP investments to strengthen financial institutions' capital levels. Treasury determined that strengthening capital levels was the more effective mechanism to help stabilize financial markets, encourage interbank lending, and increase confidence in lenders and investors. Treasury believed that strengthening the capital positions of viable financial institutions would enhance confidence in the institutions themselves and the financial system overall and increase the institutions' capacity to undertake new lending and support the economy.


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Product Details
  • ISBN-13: 9781503229112
  • Publisher: Createspace Independent Publishing Platform
  • Publisher Imprint: Createspace Independent Publishing Platform
  • Height: 280 mm
  • No of Pages: 28
  • Spine Width: 2 mm
  • Weight: 91 gr
  • ISBN-10: 1503229114
  • Publisher Date: 03 Jan 2015
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Sub Title: Capital Purchase Program
  • Width: 216 mm


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