Targeted Investment Program

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The Targeted Investment Program

SIGTARP (Oct. 2009):[1]

“The stated objective of TIP is to make targeted investments in financial institutions ‘to avoid significant market disruptions resulting from the deterioration of one financial institution that can threaten other financial institutions and impair broader financial markets and pose a threat to the overall economy.’ As of September 30, 2009, Treasury had made two expenditures under this program totaling $40 billion — purchasing $20 billion of senior preferred stock from each of Citigroup and Bank of America. In addition to the senior preferred stock, Treasury also received warrants of common stock for its investment in these financial institutions.”

SIGTARP (Jan. 2010):[2]

“As of December 31, 2009, Treasury had invested and received repayment for $40 billion of TARP funds in Citigroup and Bank of America through the Targeted Investment Program (“TIP”). The $40 billion investment occurred as a result of a $20 billion investment in Citigroup on December 31, 2008, and an investment in Bank of America of $20 billion on January 16, 2009. Although the Government still holds Citigroup and Bank of America warrants from its TIP investments, the program is effectively closed.”

Wall Street Bailout Accounting
(back to main table)
TARGETED INVESTMENT PROGRAM
Balance Sheet
Disbursed*: $40B
Current outstanding: $0[3][4]
Public Funds
Maximum at-risk: $40B[5]
Current at-risk: $40B[6]

* See the methodology and glossary for definitions of "disbursed," etc.

Funding agency and aid type

The funding agency was the Treasury Department.

The funds were a temporary investment/loan.

Who benefits

Citigroup and Bank of America shareholders.

Notes

Articles and resources

Related SourceWatch articles

References

  1. SIGTARP Oct. 2009 report, p. 41-42.
  2. SIGTARP Jan. 2010 report, p. 71.
  3. Bank of America News Release, “Bank of America Completes Repayment of TARP”, December 9, 2009.
  4. Citigroup Inc. News Release, “Citi Completes $20 Billion TARP Repayment, Terminates Loss-Sharing Agreement”, December 23, 2009.
  5. U.S. Treasury Department, Office of Financial Stability - Troubled Asset Relief Program, "Transactions Report For Period Ending March 11, 2010". Updated Treasury reports on TARP are available at: http://www.financialstability.gov/latest/reportsanddocs.html
  6. U.S. Treasury Department, Office of Financial Stability - Troubled Asset Relief Program, "Transactions Report For Period Ending March 11, 2010". Updated Treasury reports on TARP are available at: http://www.financialstability.gov/latest/reportsanddocs.html

External resources

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