	Background

CPP was the primary initiative under TARP for stabilizing the financial  markets and banking system. Treasury encouraged financial institutions that were considering  applying to CPP to consult with their primary federal bank regulators. Capital and liquidity. Appendix I: Objectives, Scope, and Methodology

The objectives of our report were to (1) describe the characteristics of  financial institutions that received funding under the Capital Purchase  Program (CPP), and (2) assess how the Department of the Treasury  (Treasury), with the assistance of federal bank regulators, implemented  CPP.
What GAO Found

Congress created the Troubled Asset Relief Program (TARP) to restore liquidity and stability in the financial system. The Department of the Treasury (Treasury), among other actions, established the Capital Purchase Program (CPP) as its primary initiative to accomplish these goals by making capital investments in eligible financial institutions. This report examines (1) the characteristics of financial institutions that received CPP funding and (2) how Treasury implemented CPP with the assistance of federal bank regulators. GAO analyzed data obtained from Treasury case files, reviewed program documents, and interviewed officials from Treasury and federal bank regulators.