Targeted Investment Program

More Money for Citi and BofA

actually invested, loaned, or spent

Both Citigroup and Bank of America received $25 billion under the Capital Purchase Program. In both cases, they received additional aid, but since CPP was 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 of 2009, 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.

More info...

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

Name State Date Entered Disbursed by TIP Returned to TIP
Bank of America
Received other federal aid. Click to see details.
N.C. Jan. 16, 2009 $20,000,000,000 $22,691,194,655
Received other federal aid. Click to see details.
N.Y. Dec. 31, 2008 $20,000,000,000 $21,759,275,317

See the list of all initiatives and programs

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