Earlier today, Treasury released its ninth Section 105(a) Troubled Assets Relief Program (TARP) report to Congress. As required pursuant to the Emergency Economic Stabilization Act of 2008, these reports are provided every 30 days and set forth, among other items, the various actions taken by Treasury during the preceding month. During the month of July, Treasury took the following actions and made the following changes with respect to TARP:
Auto Industry Financing Program – In July, GM emerged from bankruptcy; the Obama Administration announced the final appointments to Chrysler’s Board of Directors, and Treasury announced the scaling back of the Auto Task Force’s involvement in the auto industry.
Capital Purchase Program (CPP) – Treasury provided capital to 14 institutions, including four small banks under CPP terms for small banks, and received a number of repayments of CPP investments.
Homeowner Affordability and Stability Plan – Treasury entered into agreements under the Home Affordable Modification Program (HAMP) with 15 servicers during the month of July and held a closed door meeting with all participating servicers, developed standard performance metrics and took other steps to improve the effectiveness and efficient of the HAMP. Treasury also released the Supplemental Directive for its Home Price Decline Protection (HPDP) program. HPDP permits lenders to receive incentives for modifying mortgages in areas where homes have lost the most value. The Treasury Department has allocated $10 billion for the program, but the actual amount will depend on home price trends.
Public Private Investment Program (PPIP) – Treasury announced that nine firms were pre-qualified to participate as fund managers in the initial round of the Legacy Securities Public Private Investment Program. Under PPIP, Treasury will invest up to $30 billion in Public-Private Investment Funds established by private-sector fund managers and private investors.