CPP: Re-Open for (Small Bank) Business
Treasury Secretary Timothy Geithner announced this morning that, in anticipation of some large institutions paying back their TARP money, the department plans to re-open the Capital Purchase Program (CPP) for small banks with total assets under $500 million. Since the launch of the program in November, 579 institutions have received money through the CPP, 300 of which are small banks. Treasury will soon open a six month window during which new banks can apply, current CPP participants can reapply, and small banks can “form a holding company for the purposes of CPP.” Participants already in the CPP will have an “expedited approval process.” Treasury is raising the amount for which qualifying institutions can apply from 3 percent to 5 percent of risk-weighted assets. Presumably more details about the re-opened program will be forthcoming.
