U.S. to control up to 36% of Citi

Posted by Kendall Harmon

The U.S. government waded deeper into the bailout of one of the nation's largest banks Friday when it announced a deal that will give it control over as much as 36% of Citigroup's common stock.

Citigroup shares tumbled 46% in premarket trading.

The deal will convert preferred shares that Treasury already holds in Citigroup for common shares, a shift that is designed to improve the embattled bank's capital base, which in turn will hopefully allow it to increase its lending.

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Filed under: * Economics, PoliticsEconomyThe 2009 Obama Administration Bank Bailout PlanThe Banking System/SectorThe September 2008 Proposed Henry Paulson 700 Billion Bailout PackageThe U.S. GovernmentThe National DeficitTreasury Secretary Timothy GeithnerPolitics in GeneralOffice of the PresidentPresident Barack Obama

1 Comments
Posted February 27, 2009 at 8:12 am [Printer Friendly] [Print w/ comments]



1. Jeffersonian wrote:

Now just keep chanting, “He’s not a marxist, he’s not a marxist…”

February 27, 10:26 am | [comment link]
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