US Treasury will close Capital Assistance Program
WASHINGTON, Nov 9 (Reuters) – The U.S. Treasury Department said on Monday it will immediately close its Capital Assistance Program, set up last spring for bank stress tests, because the only firm needing taxpayer funds will use an auto industry support program instead.
GMAC Financial Services has indicated it will need less funds than were expected at the time of the stress tests results in May, Treasury said.
GMAC is expected to access the Troubled Asset Relief Programs Automotive Industry Financing Program to meet its capital need, and is in discussions with the Treasury on the structure of its investment, the department said.
Treasury said the Capital Assistance Program would close with no investments made.
To fund the program, the Obama administration initially asked Congress for the ability to invest up to $750 billion more in financial firms, a request that was later dropped.
(Editing by Chizu Nomiyama) ((firstname.lastname@example.org; +1-202-310-5477; Reuters Messaging: email@example.com))