Summary

This is an E-Supplement to GAO-09-504. It presents a listing of capital purchases made in qualifying financial institutions (QFIs) by the Department of the Treasury's (Treasury) Office of Financial Stability under the Capital Purchase Program (CPP). CPP is one of the programs Treasury created under its Troubled Asset Relief Program (TARP) authorities. CPP provides QFIs with additional capital through purchases of senior preferred stock and warrants. It is intended to help stabilize the QFIs by strengthening their capital base and U.S. financial markets by increasing the flow of credit to U.S. businesses and consumers. On October 14, 2008, Treasury established CPP and announced that it would allocate $250 billion of the $700 billion of the TARP funds to U.S. QFIs through purchases of preferred stock. Of the $250 billion, Treasury approved $125 billion in capital purchases for nine of the largest public QFIs considered by the federal banking regulators and Treasury to be systemically significant to the operation of the financial system. The remaining $125 billion was made available for additional QFIs. For the period October 28, 2008 through March 20, 2009, Treasury made capital purchases of almost $199 billion in 518 QFIs. Total assets of participating QFIs ranged from about $18 million to more than $2 trillion. As of March 20, 2009, Treasury had disbursed about 80 percent of the $250 billion. Capital purchases ranged from about $300,000 to $25 billion per institution and represented investments in state-chartered and national banks and bank holding companies located in many states, the District of Columbia, and Puerto Rico. For standardized terms of the various types of QFIs (publicly held, privately held, S-corporations, and community development financial institutions) that are eligible to participate in CPP, see the GAO reports GAO-09-161 and GAO-09-296. The sources for information included in the supplement include: Treasury's website listing of CPP transactions that have been funded (date funded, bank name, state located and amount funded), the Securities and Exchange's electronic filing database Interactive Data Electronic Applications (Forms 10-Ks and 10-Qs), iBanknet.com and company press releases for total assets. This document also presents updated information on the 25 financial agency agreements, contracts, and blanket purchase agreements entered into by Treasury between October 10, 2008, and March 13, 2009, to support its implementation of TARP. As of this time period, Treasury has entered into three financial agency agreements and awarded 22 contracts and blanket purchase agreements to acquire a range of services in support of TARP administration and operations. This document is based on our analysis of Treasury information. To learn more, read our report GAO-09-504 Troubled Asset Relief Program: March 2009 Status of Efforts to Address Transparency and Accountability Issues. We conducted our work from February 2009 to March 2009, in accordance with all sections of GAO's Quality Assurance Framework that are relevant to our objectives. The framework requires that we plan and perform the engagement to obtain sufficient and appropriate evidence to meet our stated objectives and discuss any limitations in our work. We believe that the information and data obtained, and the analysis conducted, provide a reasonable basis for our findings.