Capital Purchase Program - CPP

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Dictionary Says

Definition of 'Capital Purchase Program - CPP'

A program sponsored by the U.S. Treasury designed to provide new capital to banks, which will in turn allow them to loan more money to businesses and thus stimulate the economy. Under this program, the U.S. Treasury will purchase up to $250 billion of senior preferred shares of qualifying U.S. banks and savings institutions. Subscribing banks must be willing to sell an amount of stock equal to 1-3% of their risk-weighted assets.

Investopedia Says

Investopedia explains 'Capital Purchase Program - CPP'

The Capital Purchase Program was offered to the financial community on October 14, 2008. In order to participate in the program, banks and savings institutions had to respond by November 14, 2008. The shares purchased by the Treasury are considered tier 1 capital. The shares will pay a dividend of 5% per year for the first five years and then reset to 9% per year thereafter.
Search results for

'Capital Purchase Program (CPP)'

  • Panel Says CPP Not Helping Smaller Banks

    http://stocks.investopedia.com/stock-analysis/2010/Panel-Says-CPP-Not-Helping-Smaller-Banks-BPFH-FMER-UMPQ0716.aspx
    ... One of the most important TARP components was the Capital Purchase Program (CPP),
    which consisted of the US Treasury capitalizing the financial system through ...

  • Lincoln National A Home Run For Taxpayers

    http://stocks.investopedia.com/stock-analysis/2010/Lincoln-National-A-Home-Run-For-Taxpayers-LNC-PRU-ALL-AMP-HIG-C0616.aspx
    ... The Capital Purchase Program (CPP) was a part of Troubled Asset Relief Plan (TARP),
    set up at the depth of the financial crisis, and involved the government ...

  • Government Bank Bailouts Paying Off

    http://stocks.investopedia.com/stock-analysis/2009/Government-Bank-Bailouts-Paying-Off-C-NTRS-GS-MS-AXP0902.aspx
    ... It is possible, however, that when everything is paid back years from now, the Capital
    Purchase Program (CPP), an important part of the TARP, may actually be ...

  • Federal Government Got The TARP Just Right

    http://stocks.investopedia.com/stock-analysis/2008/Federal-Government-Got-The-TARP-Just-Right-RF-FHN-CYN1030.aspx
    ... Get Free Stock Analysis By Email. If viewed objectively, I would argue the TARP
    Capital Purchase Program (CPP) has the potential to replenish the capital of the ...

  • Was It Really A Bailout?

    http://stocks.investopedia.com/stock-analysis/2010/Was-It-Really-A-Bailout-HIG-DFS-MS-GS0323.aspx
    ... Get Free Stock Analysis By Email. In October, 2008, the government set up the Capital
    Purchase Program (CPP), as part of the Troubled Asset Relief Plan (TARP). ...

  • Tough To Pick The Bottom For Financials

    http://stocks.investopedia.com/stock-analysis/2009/Tough-To-Pick-The-Bottom-For-Financials-MICOFCITSMTBSTI0714.aspx
    ... company said that it might use the fund to pay back the preferred stock it issued
    to the government as part of the Capital Purchase Program (CPP) created in ...

  • Regional Banks May Receive TARP Politcal Heat In 2010

    http://stocks.investopedia.com/stock-analysis/2010/Regional-Banks-May-Receive-TARP-Politcal-Heat-In-2010-PNC-STI-CMA0125.aspx
    ... During the Bush Administration, the US Treasury initiated the Capital Purchase Program
    (CPP) under the Troubled Asset Relief Program (TARP) to help stabilize ...

  • IberiaBank Kicks Off TARP Backlash

    http://stocks.investopedia.com/stock-analysis/2009/IberiaBank-Kicks-Off-TARP-Backlash-IBKC0302.aspx
    ... Get Free Stock Analysis By Email. In the fall of 2008, the Bush administration created
    the Capital Purchase Program (CPP) as part of the Troubled Asset Relief ...

  • TARP Returns Start To Snowball

    http://stocks.investopedia.com/stock-analysis/2009/TARP-Returns-Start-To-Snowball-SBNY-SNBC-ONB-BMRC0406.aspx
    ... that they will be redeeming so-called bailout money in late 2008, as part of the
    Capital Purchase Program (CPP) of the Troubled Asset Relief Program (TARP). ...

  • Banks Turn To Investors For Handout

    http://stocks.investopedia.com/stock-analysis/2009/Banks-Turn-To-Investors-For-Handout-HBAN-SNV-ZION0923.aspx
    ... One part of the TARP was the Capital Purchase Program (CPP), which consisted of
    preferred stock investments by the government into hundreds of banks. ...

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