Citigroup Gets Weekend Bailout
In a now familiar pattern Citigroup became the latest US financial institution to get bailed out over a weekend.
The US government announced a $20 billion cash injection Sunday, just a month after the bank got $25 of tax-payers funds to help keep it afloat.
In addition to the cash, the government also agreed to guarantee $306 billion of Citi's troubled mortgages and toxic assets.
The decision came after New York-based Citigroup’s tumbling share price sparked concern that depositors might pull their money and destabilize the company.
The bank, which two years ago was the biggest in the US by market value, has since slipped to No. 5 after racking up four straight quarterly losses totaling $20 billion.
The US government announced a $20 billion cash injection Sunday, just a month after the bank got $25 of tax-payers funds to help keep it afloat.
In addition to the cash, the government also agreed to guarantee $306 billion of Citi's troubled mortgages and toxic assets.
The decision came after New York-based Citigroup’s tumbling share price sparked concern that depositors might pull their money and destabilize the company.
The bank, which two years ago was the biggest in the US by market value, has since slipped to No. 5 after racking up four straight quarterly losses totaling $20 billion.
