WASHINGTON (Reuters) - The U.S. Treasury will shut down two more financial bailout programs along with its main bank capital injection program by the end of this year, a Treasury official said on Tuesday.
The official, who spoke on condition of anonymity, said the Capital Assistance Program and the Targeted Investment Program would be shut down along with the Capital Purchase Program.
The programs are parts of the $700 billion financial bailout program that U.S. Treasury Secretary Timothy Geithner told Reuters earlier on Tuesday were ready to be wound down.
The Capital Purchase Program is the Treasury's main bank capital injection program launched in October 2008, with more than $200 billion invested in more than 600 banks.
The Targeted Investment Program was used to further prop up Citigroup (C.N: Quote, Profile, Research, Stock Buzz) and Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz) to the tune of $40 billion, while the Capital Assistance Program was launched in the spring of 2009 to provide capital to banks after regulatory "stress tests" determined their balance sheet health.
None of the banks found to need additional funds in the stress tests have tapped the Capital Assistance Program, choosing instead to raise capital in the private markets.
In addition, the Treasury official said the bailout funds dedicated to the Term Asset-Backed Securities Loan Facility -- a joint Treasury-Federal Reserve program -- and a public-private investment program designed to sop up toxic assets would be capped at $30 billion each.
(Reporting by David Lawder; editing by Tim Ahmann)
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