Bank of America, Chase and Wells Fargo will all have to shoulder the cost of the $2.7 billion bailout of the Nevada State Bank by the U.S. government, according to a new report from the Federal Reserve Bank of New York.
Bank of America and Chase will bear the bulk of the bill, the New York Fed found, after the government agreed to buy their holdings of $1.9 trillion in assets.
The Federal Reserve has already put in place $200 billion in additional aid to the state bank, which it is calling the largest single holder of federally insured deposits in the country.
It is expected to be repaid through federal taxes and other revenue sources over the next two years.
In addition to Bank of American, the Fed found that JPMorgan Chase, the biggest U.K. bank, will bear a $1 billion bill, with a similar balance in Wells Fargo, according the report.
The New York Federal Reserve also says that Citigroup will be responsible for $500 million in the state.
The New York State Department of Banking and Insurance said it was “committed to assisting Bank of the United States with its ongoing operations and will work with the bank to address any remaining needs.”
The report comes after the U