Program first announced by Treasury Secretary Timothy Geithner on 2/10/2009.  When implemented, it will provide capital to banks and bank holding companies that demonstrate a need for further capital to support lending activities and survive further economic downturns.  Banks that participate will receive preferred securities that are convertible into common equity if necessary.

In a press release on November 9, 2009, the Treasury announced the end of the Capital Assistance Program, closing with no investments made to date. The closing came at the same time that the Federal Reserve announced that of the 10 banks shown to be in need of additional capital buffers, in the face of larger than expected losses, from stress tests conducted in May 2009, 9 had sufficiently raised enough capital. GMAC remained as the only bank holding company to be in need of further capital increases, which TARP will provide through the Automotive Industry Financing Program.