Texas Enterprise Fund

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The Texas Enterprise Fund is a business incentive fund that was created by legislation in 2003. The fund, which had an initial $295 million investment, is used for ensuring the growth of business in Texas. One of Texas’ most competitive recruitment tools, these funds are used primarily to attract new business to the state or assist with the substantial expansion of an existing business as part of a competitive recruitment situation. Sources indicate that since 2003 the Fund has yielded up to $6.3 billion in capital investment in Texas by out-of-state companies .

In 2004, authorization was given for the fund to grant $20 million to Countrywide Financial in return for a promise "to create 7,500 new jobs in the state by 2010." The grant (all of which are approved by the Governor, the Lieutenant Governor and Speaker of the House) is one of the largest made from the fund in terms of the size and the number of jobs promised. In the fall of 2007, while slashing jobs and with its stock price plummeting, Countrywide was eventually acquired in a fire sale by Bank of America. But thanks to the "claw-back" provisions in the program, grantees return all funds to the state for jobs not created.

A fire sale is the sale of goods at extremely discounted prices. The term originated in reference to the sale of goods at a heavy discount due to fire damage. A good example would be in Heatons in 1993. It may or may not be defined as a closeout, the final sale of goods to zero inventory. They are said to occur in the financial markets when bidders who value assets highly are prevented from bidding on them, depressing the average selling price below what it otherwise would be. This lowering of the price can cause even further issues because it may be inaccurately perceived as signaling negative information.

Bank of America American multinational banking and financial services corporation

The Bank of America Corporation is an American multinational investment bank and financial services company based in Charlotte, North Carolina with central hubs in New York City, London, Hong Kong, Minneapolis, and Toronto. Bank of America was formed through NationsBank's acquisition of BankAmerica in 1998. It is the second largest banking institution in the United States, after JP Morgan Chase. As a part of the Big Four, it services approximately 10.73% of all American bank deposits, in direct competition with Citigroup, Wells Fargo, and JPMorgan Chase. Its primary financial services revolve around commercial banking, wealth management, and investment banking.

In 2012, it was announced that Apple would be adding a new campus in Austin, creating 3,600 new jobs. The Fund would be investing $21 million over ten years.

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