Tiaam Tui has taken $3 billion out of the Commonwealth’s $15 billion TIAA-CREF funding pool.
Tui, the chairman and chief executive of Tiaay, took out $1.3 billion of the funding for the bank last year and another $2.5 billion of $5 billion this year, Tui said on Monday.
Tie-ins between banks and private investors are common in the banking sector and the Tiaaya Bank was among the first to enter the TIAAA fund in the wake of the financial crisis.
The new deal will give Tiaaiy access to $2 billion from the fund, which will provide a cushion in the event of the bank’s future closure.
Tiaay was also among the banks that signed up for the $3bn loan agreement in March this year.