Certain privately-held financial institutions have until December 8, 2008, to apply for the Capital Purchase Program, under which the federal government is purchasing up to $250 billion of senior preferred shares in qualifying banks, savings associations, and certain bank and savings and loan holding companies.
As reported in our November 6, 2008, publication, the initial term sheet, application deadline and other information released for participation in the program applied only to publicly-held applicants. On November 17, though, the U.S. Department of Treasury released the term sheet and other information for privately-held financial institutions. Treasury excluded S corporations and mutual organizations from the term sheet and deadline, saying it is still considering the participation of such organizations in the program.
The term sheet for privately-held institutions and related information are available at the Treasury Department website.