Program Purpose and Overview
As of September 30, 2023, all TARP programs have closed. Treasury invested approximately $245 billion across five distinct bank programs. Each of these programs was established to accomplish different goals as part of the overall effort to stabilize America's banking system. Treasury recovered an amount that was greater than what was invested in banks under TARP. Taxpayers began to see a positive return on their bank investments in March 2011. Every additional dollar that was recovered from TARP's bank investments represents an additional return for the taxpayers.
- TARP bank investment programs succeeded in helping to stabilize the banking system.
- TARP funds were invested in both large and small banking institutions.
- TARP's bank programs earned significant positive returns for taxpayers. As of September 30, 2023, Treasury recovered $275.9 billion through repayments and other income - compared to the $245.5 billion originally invested.
- The final investment under the Capital Purchase Program (CPP) – the largest bank program under TARP – was made in December 2009.
Banking Programs at a Glance
Under the Asset Guarantee Program (AGP), the government supported institutions whose failure would have caused serious harm to the financial system and the broader economy.
Treasury worked with federal banking regulators to develop a comprehensive “stress test,” known as the Supervisory Capital Assessment Program (SCAP), to determine the health of the 19 largest bank holding companies. This proved to be a critical step to restore confidence in the financial system and get credit flowing again.
The Capital Purchase Program (CPP) was launched to stabilize the financial system by providing capital to viable financial institutions of all sizes throughout the nation.
Treasury created the Community Development Capital Initiative (CDCI) on February 3, 2010, to help viable certified Community Development Financial Institutions and the communities they serve cope with effects of the financial crisis.
Treasury established the Targeted Investment Program (TIP) in December 2008. The program gave the Treasury the necessary flexibility to provide additional or new funding to financial institutions that were critical to the functioning of the financial system.