The Capital Purchase Program, $205bn in financial firm relief funds from the Treasury's $700bn stimulus package, the Troubled Asset Relief Program (TARP), is nearly repaid in full and likely to turn a profit, according to a report from broker/dealer investment bank Keefe, Bruyette and Woods. Taxpayers in the United States fund TARP and the current financial reform legislation includes provisions to unwind the program before its original deadline of October 3, 2010. The KB&W report, put together by equity researcher Melissa Roberts, finds that the average CPP return on investment (ROI) is an average of 10.3%, with six firms offering more than 20% ROI. If things continue in this way, the CPP is set to turn a profit. However, there is still some downside risk, according to Robert's report. The CPP invested in 707 financial institutions, with 98 failing to make May payments. The Treasury currently is owed $65bn from 632 banking firms. The Treasury is also posting losses on bankrupt commercial lender CIT and the failed bank, Pacific Coast National Bancorp, totaling $2.3bn. That loss is set to grow as Pacific Coast originally received $4.1m in CPP funds in January 2009, and under its terms of bankruptcy, that is not recoverable by the Treasury. Write to Jacob Gaffney.