Targeted Investment Program

The Targeted Investment Program

SIGTARP (Oct. 2009): "“The stated objective of TIP is to make targeted investments in financial institutions ‘to avoid significant market disruptions resulting from the deterioration of one financial institution that can threaten other financial institutions and impair broader financial markets and pose a threat to the overall economy.’ As of September 30, 2009, Treasury had made two expenditures under this program totaling $40 billion — purchasing $20 billion of senior preferred stock from each of Citigroup and Bank of America. In addition to the senior preferred stock, Treasury also received warrants of common stock for its investment in these financial institutions.”"

SIGTARP (Jan. 2010): "“As of December 31, 2009, Treasury had invested and received repayment for $40 billion of TARP funds in Citigroup and Bank of America through the Targeted Investment Program (“TIP”). The $40 billion investment occurred as a result of a $20 billion investment in Citigroup on December 31, 2008, and an investment in Bank of America of $20 billion on January 16, 2009. Although the Government still holds Citigroup and Bank of America warrants from its TIP investments, the program is effectively closed.”"

Funding agency and aid type
The funding agency was the Treasury Department.

The funds were a temporary investment/loan.

Who benefits
Citigroup and Bank of America shareholders.

Related SourceWatch articles

 * SIGTARP Quarterly Report to Congress July 21, 2009
 * Troubled Asset Relief Program

External resources

 * Targeted Investment Program