Treasury White Paper 02 2009

The Capital Assistance Program (CAP) aims to ensure that major US financial institutions can continue lending to creditworthy borrowers during the economic downturn. The program involves two parts: 1) a forward-looking supervisory capital assessment of the 19 largest bank holding companies to determine if additional capital buffers are needed; and 2) contingent capital from the US Treasury that institutions can access if needed to maintain market confidence. The capital will take the form of preferred shares convertible to common equity. The goal is for institutions to replace government capital with private funds over time, while supporting lending in the interim.