1 Origins and execution of the Supervisory Capital Assessment Program By February 2009, many steps had already been taken to restore the health of, and confidence in, U.S. banks. The U.S. Treasury had injected capital into banks under the Troubled Asset Relief Program (TARP). The Federal Deposit Insurance Corporation had expanded guarantees for bank liabilities under its Temporary Liquidity Guarantee Program.
And the Federal Reserve had established a number of lending programs to provide liquidity to financial institutions in addition to its aggressive monetary policy actions. Despite these actions, a great deal of uncertainty remained about future bank losses and solvency, which was only increased by the rapidly deteriorating macroeconomic conditions in early 2009.