Treasury on Friday said it would consider on a case-by-case basis aid similar to the package it extended to prop up flagging
as investors' fears mounted and its stock price plummeted in November.
Treasury said its Targeted Investment Program, created in the $700 billion financial bailout plan created by Congress in October, would consider a variety of information from institutions' regulators and other sources before determining whether to provide aid.
on Nov. 23 was offered $20 billion from the Troubled Assets Relief Program, in addition to the government's agreement to backstop up to $306 billion of losses in various assets, as the bank's stock took a beating in an accelerating panic.
"In an environment of high volatility and severe financial market strains, the loss of confidence in a financial institution could result in significant market disruptions that threaten the financial strength of similarly situated financial institutions and thus impair broader financial markets and pose a threat to the overall economy," Treasury said in a statement Friday.
The Treasury secretary, in consultation with
chairman and Congress, can invest in any financial instrument, including debt, equity, or warrants, that they determine to be a troubled asset, Treasury said. In determining which institutions are eligible for the program, Treasury will look at how their destabilization will affect creditors and counterparties, their size and standing in financial markets and the extent to which they have access to funds in the private market or through other government agencies.
Citi's aid package in November came on top of an earlier $25 billion investment Treasury made through TARP's Capital Purchase Program. Citi was one of nine original institutions to receive investments through the program, including
Bank of America
This article was written by a staff member of TheStreet.com.