Notice is a historical project of the Committee for a Responsible Federal Budget, which tracked the money spent by the 2009 stimulus bill. This site is not regularly updated.

Purchase of Bank of America Preferred Stock

January 16, 2009
Policy Area: 
Economic Target: 
Action Type: 
Maximum Amount: 
$20.00 billion
Deficit Impact: 
-$1.30 billion
In January of 2009, the Department of Treasury purchased $20 billion in preferred stock from Bank of America under the "Targeted Investment Program" of TARP.

This purchase was on top of an initial $25 billion investment through the Capital Purchase Program, and followed by a multi-agency government guarantee of approximately $118 billion of its assets offered through the Department of Treasury, FDIC, and Federal Reserve.

On December 9, 2009, Bank of America repurchased the full $20 billion in assets held by TARP through TIP.

On March 3, 2010 Bank of America repurchased $1.255 worth of warrants.



Amount spent indicates investment made as of 4/10/2010 ( Budgetary impact calculated by CRFB using CBO's practice of estimating costs on a risk-adjusted present value basis.

Deficit impact is derived from CBO's estimated subsidy cost for the Targeted Investment Program investments in Bank of America and Citigroup, as listed in CBO's January 2010 baseline.

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