High Quality Content by WIKIPEDIA articles! The Capital Purchase Program or CPP is a preferred stock and equity warrant purchase program conducted by the US Treasury's Office of Financial Stability as part of Troubled Assets Relief Program (aka, TARP). According to the first congressionally mandated oversight report published by GAO, " primary focus was expected to be the purchase of mortgage-backed securities (MBS) and whole loans... within 2 weeks of enactment... the Treasury announced that it would make $250 billion of the $700 billion available to U.S. financial institutions through purchases of preferred stock." Because preferred stock is similar to debt in that it gets paid before common stock, some economists have questioned whether the buying of preferred stock by the CPP will be effective in getting banks to lend. Other economist have argued that the capital purchases represent a taxpayer subsidy of unsecured creditors. A review of investor presentations and conference calls...