Purchase of Citigroup Preferred Stock
Date:
November 23, 2008
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Equity Purchase
Maximum Amount:
$20.00 billion
Deficit Impact:
-$1.70 billion In November of 2008, the Department of Treasury purchased $20 billion in preferred stock from Citigroup 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 $306 billion of its assets offered through the Department of Treasury, FDIC, and Federal Reserve.
On December 23, 2009, Citigroup repurchased the full $20 billion in assets held by TARP through TIP.
Source:
Notes:
Amount spent indicates equities purchased as of 2/1/2010 ( http://www.financialstability.gov/docs/transaction-reports/transaction_report_04-20-2009.pdf ).
Deficit impact is derived from CBO's subsidy rate for the investment in Citigroup under the Targeted Investment Program, as detailed in CBO's January 2010 baseline.