Re:Joint Statement by the Department of the Treasury, Federa...
by dragonwriter on Sunday March 12, 2023 @09:35PM
(#35129513)
> BoA was never at risk of failing.
Yes, they were, that's why the systemic risk exception was invoked for them.
> but they didn't need TARP
They needed the systemic risk exception and their own specific, $20 billion capital injection and government loss protection bailout plan very similar to Citigroup's to be announced (the announcement itself stabilized things enough that they ended up not needing the bailout, which also happened with Wachovia’s before Citigroup.)
Yes, they were, that's why the systemic risk exception was invoked for them.
> but they didn't need TARP
They needed the systemic risk exception and their own specific, $20 billion capital injection and government loss protection bailout plan very similar to Citigroup's to be announced (the announcement itself stabilized things enough that they ended up not needing the bailout, which also happened with Wachovia’s before Citigroup.)