Asset Guarantee Program
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Government Guarantee
Maximum Amount:
$12.50 billion
Deficit Impact:
-$1.00 billion 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 guarantess of Bank of America assets by the Fed and FDIC.
See the companion guarantees of Citigroup assets by the Fed and FDIC.
Notes:
Maximum amount figure represents Treasury's share of total assets under guarantee. Deficit impact based on amount spent.
Deficit impact is derived from CBO's estimated subsidy cost for the Treasury (TARP-funded) portion of the Bank of America asset guarantees and Citigroup's asset guarantess, as listed in the CBO's January 2010 baseline.
