The U.S. Treasury Department keeps investing in the health of the financial system: at the end of 2008 its purchase of preferred stock and warrants from banks large and small under the Capital Purchase Program totaled $177.5 billion. Treasury has allocated $250 billion under the CPP. The most recent recipients as of New Year’s Eve were SunTrust Banks ($1.35 billion); PNC Financial Services Group ($7.579 billion); Fifth Third Bancorp ($3.4 billion); CIT Group ($2.33 billion); SunTrust Banks ($1.35 billion); First Banks, Inc. ($295.4 million); Hampton Roads Bankshares ($80.347 million); and West Bancorporation ($36 million).
Some time after the fact, meanwhile, Treasury has released the “program description” for the Targeted Investment Program that infused Citigroup with $20 billion in additional funds and backstopped $306 billion in troubled assets in exchange for preferred stock. As part of the November 2009 deal, Citi will shoulder first $29 billion in losses, and the government will take on 90 percent of remaining potential losses. Treasury and FDIC are getting $7 billion in Citi preferred stock.