This morning, Treasury Secretary Paulson announced that, in addition to the nine banks who last week announced their participation in Treasury's voluntary Capital Purchase Program, Treasury has "received indications of interest from a broad group of banks of all sizes." According to the press release and related FAQs, an interested institution should submit an application to its primary regulator (and, in the case of a holding company, the primary federal regulator for its largest insured depository institution subsidiary) to participate in the program. Upon review of the application, the primary federal regulator will forward the application and its recommendation to the Office of Financial Stability at the Treasury Department, at which point Treasury will review it and decide whether or not to make the capital purchase.

Secretary Paulson emphasized that the CPP "is not being implemented on a first-come-first-served basis." All terms for this program are the same for all institutions that apply before the capital purchase program deadline of November 14, 2008, and "sufficient capital has been allocated so that all qualifying banks can participate." Neither Treasury nor any of the federal banking agencies have issued any guidance about what criteria or factors will be considered by the federal banking agencies and Treasury in deciding whether to recommend or approve applications to participate in the CPP.