Citigroup is the latest big bank to receive US government help. The U.S. Treasury will invest $20 billion in Citigroup as part of its Troubled Asset Relief Program.
Citigroup is the latest big bank to receive US government help. The U.S. Treasury will invest $20 billion in Citigroup as part of its Troubled Asset Relief Program (TARP) in exchange for preferred shares that carry an 8 percent coupon.
In addition the US government has agreed to guarantee over $300 billion of Citigroup’s troubled assets, loans and securities backed by residential and commercial real estate.
Citi will, however, continue to remain an independent entity. This is not the first time, nor probably the last time, that Citi has had to rely on state aid for survival.
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