Bank of America Corporation

Maya MacGuineas — Mon, 20 Jul 2009 20:52:43 +0000

Economic Target:

Bank of America

Maximum Amount:

25000000000

Amount Spent:

Deficit Impact:

-310000000

This institution received funds from the Treasury Department under the Capital Purchase Program in order to promote lending and market liquidity. The institution gives the Treasury Department warrants and dividend payments, while the Treasury buys preferred stock shares from the bank.

On October 28, 2008, The Department of Treasury purchased $15 billion in Bank of America equity shares as part of the first round of equity purchases under the Capital Purchase Program. On January 9, 2009, the Treasury made an additional $10 billion equity purchase. Since then, Treasury has purchased an additional $20 billion of Bank of America preferred stock, and joined the FDIC and Federal Reserve in a multi-agency government guarantee of approximately $118 billion of its assets.

On December 9, 2009, Bank of America repurchased in full the $25 billion in assets held by TARP through the CPP.

On March 3, 2010, Bank of America repurchased its warrants held by TARP, creating a total net gain for TARP of $310 million in its assistance to the company.

Source:

Latest TARP Reports

Notes:

Maximum amount based on official Treasury statements. Amount spent indicates loans and purchases minus loan repayments (but not dividends), as of 10/15/2010 (http://www.financialstability.gov/latest/index.html). Deficit impact is net proceeds (excluding dividends) from Bank of America.

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Stimulus.org - Bank of America

Bank of America Corporation