The Treasury Department is conducting a survey on how all TARP CPP recipients used the capital provided by TARP during 2009.  Specifically, the Treasury is seeking to collect information to understand what actions institutions took, or were able to avoid taking, because of CPP funding.  In addition to collecting feedback through the surveys, the Treasury will also publish summary balance sheet and income statement information from each institution’s regulatory filings.

Survey responses are due Thursday, April 15, 2010.

While responding to the survey is not required under the TARP CPP agreements or regulations, banks failing to respond are likely subject to possible criticism from their primary regulator.  For example, FIL-1-2009 encourages state non-member banks to document how the CPP funds were used and encourages summarizing such information in public documents.  While the Use of Capital Survey is not explicitly listed, FDIC examiners may take the failure to respond as an affront to their regulatory guidance.

In addition, Treasury will still pull the quantitative data from each recipients regulatory filings regardless of whether the institution responses to the Use of Capital Survey.  Accordingly, if an institution don’t respond, it will not be able to supplement the raw financial data with additional commentary.

We believe submitting short responses to the questions, highlighting overall approach without necessarily including substantive quantitative analysis, may be the best course of action.  Early in 2009, we posted commentary on how to demonstrate that a bank is using TARP Capital to lend; that guidance continues to be applicable.

In preparing their responses, recipients could also look at the aggregate SIGTARP survey results on use of funds to get an idea of how others will respond, as well as the individual responses made to SIGTARP.

Additional Information: