Treasury’s Capital Purchase Program continues to arouse suspicion, dissension, and exasperation. In a stern letter to Treasury Secretary Henry M. Paulson, American Bankers Association president and CEO Edward L. Yingling complained of confusion about the “purpose of the COO in the press and with policy-makers,” and urged that “Treasury and bank regulators clarify the purpose of the program very directly, differentiating the CPP capital program’s function to provide capital to strongly capitalized institutions from programs designed to help failing institutions.”

“It is completely unfair to ask thousands of banks across the country—and they are being explicitly asked by their regulators—to participate in a program when the impact of the program on those banks is unknown,” Yingling said.

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