Targeted Investment Program

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A program under the Emergency Economic Stabilization Act

2 recipients

$40 billion promised

$40 billion actually invested, loaned, or spent

More info from www.financialstability.gov

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Initiatives and Programs » Emergency Economic Stabilization Act

More Money for Citi and BofA

Both Citigroup and Bank of America received $25 billion under the Capital Purchase Program. In both cases, they received additional aid, but since CPP is notionally for 'healthy' banks, it came under a different program.

On Nov. 23, 2008, the Bush administration announced it was investing $20 billion more in Citigroup, among other steps to help the struggling company. In early January, the Treasury announced this help had been given via the Targeted Investment Program, which it explained was for struggling companies whose failure could damage the financial system. A couple of weeks later, Bank of America got a similar deal.

The terms are less attractive than the general 'healthy' bank program: the preferred shares pay an 8 percent dividend annually. Treasury also received stock warrants as part of these investments.

Documents from the Treasury Department:
Citigroup Contract
Bank of America Guarantee Term Sheet
Bank of America Preferred Investment Term Sheet

More info from www.financialstability.gov

Go to list of all initiatives and programs

For our blog, resources and more, see our main bailout page.

The following list shows the 2 recipients of Targeted Investment Program.

Name	State	Date Entered	Amount Committed by TIP	Amount Returned to TIP	Total Bailout Commitment
Bank of America Received other federal aid. Click to see details.	N.C.	Jan. 16, 2009	$20,000,000,000	$20,000,000,000	$45,000,000,000
Citigroup Received other federal aid. Click to see details.	N.Y.	Dec. 31, 2008	$20,000,000,000	$20,000,000,000	$45,000,000,000

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