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Recent Resolution and Bail-Out of Large Financial Institutions in the U.S.A.

  IndyMac Washington Mutual Wachovia Citigroup Bank of America
Event Date:
Date of Failure
Date of Bail-out
2008/7/11(Fri) 2008/9/25(Thur) 2008/9/29(Mon) 2008/11/23(Sun) 2009/1/16(Fri)
2009/1/2(Fri)
Types of Resolution and Bail-Out Bridge Bank → P&A P&A Open Bank Assistance Open Bank Assistance Open Bank Assistance
Systemic Risk Exception No No Yes Yes Yes
Assuming Financial Institutions Bridge Bank→IMB Hold Co LLC JPMorgan Chase Citigroup Inc - -
Coverage Insured Deposits Only Full Coverage Full Coverage Full Coverage Full Coverage
Other Debt

(Eligible Financial Contract)
Excluded from Coverage

(covered by insurance)
Excluded from Coverage

(inherited by assuming financial institutions)
Assumed

(inherited by assuming financial institutions)
Covered

(covered)
Covered

(covered)
Shareholders Excluded from Coverage Excluded from Coverage Paid $1 per share Covered Covered
Process of Resolution and Bail-Out July 2008:
Establishment of a Bridge Bank

January 2009:
Sold to IMB Hold Co LLC under IMB Management Holdings LP with a loss share agreement
September 2008:
- Sales of banking operations to JP Morgan Chase
- Paid FDIC $1.9 billion dollars
September 2008:
-Sales of banking operations to Citigroup
-A loss share agreement with Citigroup by FDIC
-Granted FDIC preferred stock and warrants.
-$20 billion of capital injection by TARP in addition to $25 billion injection of bailout money.
-a government guarantee of $301 billion by Treasury Dept. and FDIC
-a non-recourse loan by FRB
-Granted FDIC preferred stock and Treasury Dept. preferred stock and warrants
-$20 billion of capital injection by TARP in addition to $25 billion injection of bailout money.
-a government guarantee of $118 billion by Treasury Dept. and FDIC
-a non-recourse loan by FRB
-Granted FDIC preferred stock and warrants
Possible Loss $8.5~9.4 billion $0 - Up to $10 billion as indemnification of loss Up to $10 billion as indemnification of loss
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