Bank of AmericaBackground
On January 16, 2009, the U.S. Department of the Treasury, the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) jointly announced that the U.S. government would provide support to Bank of America to contribute to financial market stability. The terms of the support, which included a package of guarantees, liquidity access, and capital, are available in this press release.
On May 7, 2009, following the release of the results of the Supervisory Capital Assessment Program, Bank of America announced that it did not plan to move forward with a part of the package of supports announced in January 2009--specifically, a residual financing arrangement with the Federal Reserve and the related guarantee protections that would have been provided by the Treasury and the FDIC with respect to an identified pool of approximately $118 billion in assets.
The Federal Reserve ultimately did not extend credit to Bank of America under this arrangement, and in September 2009, Bank of America paid an exit fee in order to terminate it. The Federal Reserve's portion of the exit fee was $57 million.