Potential Real Estate Opportunities Under TARP

The Treasury Department's TARP Capital Purchase Program currently provides for up to $250 billion of equity investments in eligible financial institutions. Publicly traded financial institutions had to apply to participate in the Capital Purchase Program by November 14, 2008. The Treasury has stated that it intends to close these investments in public institutions by year-end 2008. It had closed $125 billion of investments from the first nine institutions by the end of October, and by November 14 had closed the next round of investments in regional financial institutions. Of the initial $350 billion of the TARP, $60 billion remains uncommitted at this time. However, the Treasury Department recently announced that it would suspend its efforts to purchase problem assets, including illiquid mortgage-related assets.