Capital Purchase Program Guidelines

U.S. Treasury Secretary Henry M. Paulson, Jr. has announced guidelines for qualifying U.S. controlled banks, savings associations, and certain bank and savings and loan holding companies interested in participating in the Capital Purchase Program.  Paulson says “under the program Treasury will make $250 billion in capital available to U.S. financial institutions in the form of preferred stock” and he made it clear that financial institutions of all sizes may take part.

Other important points from Paulson:

·        There is a single application form which will be submit to an institution’s primary regulator – the Federal Reserve, the FDIC, the OCC or the OTS

·        The terms for this program are the same for all institutions that apply before the deadline

·        To apply for the capital program, banks should review the program information on the Treasury website and then consult with their primary federal regulator

·        The program is not being implemented on a first-come-first-served basis

·        Regulators will use a standardized process to review all applications to ensure consistency

·        The deadline to apply is 5:00 pm (EDT) on November 14, 2008

Click here for the guidelines.

Click here for FAQs about the program.