In addition to purchasing Bank of America and Citigroup stock, the TARP program participated in a multi-agency guarantee, in conjunction with the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), of around $425 billion in Citigroup and Bank of America assets. The terms of the guarantees stipulate that Citigroup and Bank of America would cover all portfolio losses up to $29 billion and $10 billion , respectively, while 90 percent of additional losses from both companies would be covered by the federal government.

See the companion TARP entry for the Public-Private Investment Program (PPIP) and the Fed entry for PPIP.

Program first announced by Treasury Secretary Geithner on 2/10/2009. 

Part of multi-agency government guarantee of approximately $118 billion in Bank of America assets, most of which it acquired through the purchase of investment bank Merrill Lynch.  Under the terms of the agreement, Bank of America is responsible for the first $10 billion in losses on the assets.  Remaining losses are divided 90/10 between the government and Bank of America.  For the next $10 billion in losses, the Treasury and FDIC split the government’s 90% share.  90% of the remaining losses are covered by the Fed through a non-recourse loan.

Part of a government guarantee of $301 billion in Citigroup assets by multiple entities (Treasury, FDIC, Federal Reserve).  After Citigroup absorbs the first $29 billion in losses, the remaining losses are split 90:10 between the government and Citigroup, with the first $5 billion absorbed by the Treasury with TARP funds, the next $10 billion paid by the FDIC, and the remaining losses covered by the Federal Reserve with a non-recourse loan.

Part of a government guarantee of $301 billion in Citigroup assets by multiple entities (Treasury, FDIC, Federal Reserve).  After Citigroup absorbs the first $29 billion in losses, the remaining losses are split 90:10 between the government and Citigroup, with the first $5 billion absorbed by the Treasury with TARP funds, the next $10 billion paid by the FDIC, and remaining losses covered by the Federal Reserve with a non-recourse loan.

Establishment of Temporary Corporate Credit Union Liquidity Guarantee Program, which guarantees debt obligations for eligible corporate credit unions for up to 100% of their maximum secured debt as of September 30, 2008.

Establishement of Temporary Liquidity Guarantee Program (TLGP), under which the FDIC guarantees unsecured new loans issued by banks, thrifts, and selected holding companies.  Debt must be issued by June 30, 2009 and mature by June 30, 2012.   Program also fully insures certain of non-interest-bearing deposit transaction accounts, much of which exceeds the existing $250,000 deposit insurance limit.  Accounts guaranteed through December 31, 2009.

One-year program guarantees funds in participating money market accounts to encourage market stability.  Treasury provides up to $50 billion in financing from the Exchange Stabilization Fund. The Treasury will charge mutual funds a small insurance coverage fee. As of March 31, 2009, all of the major mutual fund companies had joined the program.

Purchase of student loans and participation interests in student loans from lenders in order to improve liquidity and ensure the continuation of student loans.

Program announced by the Treasury Department on March 19, 2009 that provides government guarantees for payments to suppliers from participating auto companies.  General Motors and Chrysler have already agreed to partcipate in the program.  The program has two components: