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The Capital Journal
MortgageDaily.com has tracked almost 50 of the nearly 90 institutions that have accessed or been approved to access the $700 billion Troubled Asset Relief Program. Two non-banks recently announced their intentions to become bank holding companies — though a failed attempt by another firm to become a bank holding company could spell disaster for one of the country’s biggest mortgage lenders.

CPP Journal
A new watchdog has been confirmed to oversee the $700 billion Troubled Asset Relief Program — which has seen plenty of action recently.

Firms Restructure to Tap TARP Funds
The U.S. Department of the Treasury has already disbursed $150 billion in funds from the Troubled Asset Relief Program to financial institutions and still has another $100 billion to go. The lure of cheap capital has prompted another five firms — including a commercial financial company, a mortgage servicer and a mortgage insurer — to initiate the process of converting to bank-holding companies. Three firms are making bank acquisitions as part of the conversion process.

Banks Jump On CPP Bandwagon
A stream of banks have recently reported being approved to sell nearly $1.5 billion in securities to the U.S. Department of the Treasury under the Troubled Asset Relief Program. Most of the participants indicated that they were already well capitalized.

Banks Continue to Tap CPP
Utilization of the Treasury’s capital purchase program continues to be brisk — with most institutions promising to use the funds to strengthen community activity. The program taps into available funds from the $750 billion Troubled Asset Relief Program.

Banks Grab TARP Capital
More than 1,000 financial institutions have applied for or received capital investments from the Troubled Asset Relief Program, according to Congressional testimony. Funds from the program will be used to support lending and acquire other banks.

Troubled Mortgage Asset Purchases Curtailed The U.S. Treasury secretary said today that the Troubled Asset Relief Program will not be used to purchase troubled mortgage assets. He said the $700 billion fund would be better utilized for capital investment.

Some Firms Saved by Mergers
Mergers have picked up steam as several mortgage companies teeter on the brink of insolvency. Some of the mergers are forcing changes at the top of the executive ranks. Meanwhile, losses continue to pound financial firms — forcing regulator actions at some.

Volatile Banking Sector Reshapes
As capital continued to be wiped out and dozens of small banks were hit with regulatory orders, some financial institutions have been approved to participate in the government’s capital purchase plan. One mortgage company is shedding its real estate investment trust status, another is shutting down its commercial operations and a third will be acquired by a bank.