TARP Continues to Focus on Capital Purchase Program Rather than Asset Purchases
The Treasury Department announced today the government's $700 billion economic rescue package will continue to focus on capital purchase programs in the near term, rather than buying and selling distressed assets, which was the plan's original aim. The Treasury Department revealed that it is considering both broadening the Capital Purchase Program to include smaller specialty finance firms and to require newcomers to the program to raise matching funds. For further details click here to read Treasury Secretary Henry Paulson's entire statement.
Meanwhile, financial regulators released an interagency statement encouraging lenders to meet the needs of creditworthy borrowers, both business and consumers. The interagency statement warned against tightening underwriting standards "excessively." Click here for the entire statement.
