Treasury Guarantee of Citigroup Assets
Date:
November 23, 2008
Policy Area:
Financial Sector Policy
Economic Target:
Financial Institutions
Action Type:
Government Guarantee
Maximum Amount:
$5.00 billion 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.
On December 23, 2009, Citigroup terminated the asset guarantee agreement.
See the companion guarantee of Citigroup assets by the Fed and FDIC.
Notes:
Amount spent current as of 1/4/2010 (http://www.financialstability.gov/docs/transaction-reports/transaction_report_04-20-2009.pdf).
Deficit impact is derived from CBO's calculated subsidy rate for Citigroup's guaranteed assets (0%), as detailed in the CBO's January 2010 baseline.