Equity Warrants

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August 25, 2024 4 min read Definitions

Capital Purchase Program (CPP): A Critical Financial Initiative

Economics Finance Capital Purchase Program CPP TARP Treasury Department Financial Stability Preferred Stock Equity Warrants

The Capital Purchase Program (CPP) was a program run by the U.S. Treasury Department under the Troubled Asset Relief Program (TARP) authority to reinforce the solvency of major banks. The Treasury purchased billions in nonvoting preferred stock and equity warrants, providing capital injections while implementing regulations on executive compensation and dividend restrictions.