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Monday, November 24, 2008

US Government Bails Out Citigroup, once the largest U.S. bank

Nov 24 2008
Officials agreed to a $326 billion rescue of the company that was once the largest U.S. bank. The government intends to invest $20 billion in Citigroup and to guarantee as much as $306 billion of its troubled assets. The deal will make the government the largest Citigroup shareholder with 7.8% of its shares.

The deal marks the latest of several government moves to buy direct investment in banks in order to bolster their balance sheets and restore confidence in the entire U.S. banking system.


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