Asset Guarantee Program

Under the Asset Guarantee Program (AGP), Treasury will guarantee certain assets held by the qualifying financial institution. The set of insured assets is selected by the Treasury and its agents in consultation with the financial institution receiving the guarantee. In accordance with section 102(a), assets to be guaranteed must have been originated before March 14, 2008. Treasury determines the eligibility of participants and the allocation of resources on a case-by-case basis. The program is meant for systemically significant institutions, and could be used in coordination with other programs. Treasury may, on a case-by-case basis, use this program in coordination with a broader guarantee involving other agencies of the United States government.

In implementing the AGP, Treasury collects a premium, deliverable in a form deemed appropriate by the Treasury Secretary. As required by the statute, an actuarial analysis would be used to ensure that the expected value of the premium is no less than the expected value of the losses to TARP from the guarantee. The United States government would also provide a set of portfolio management guidelines to which the institution must adhere for the guaranteed portfolio.

• Citigroup Inc.
• Citigroup Exchange
• Citigroup Amendment
• Citigroup Termination Agreement
• Bank of America Termination Agreement
• Report to Congress Pursuant to Section 102 of the Emergency Economic Stabilization Act

• Bill: The Emergency Economic Stabilization Act