24 November 2008

US Takes a $20 Billion Stake and Guarantees $306 Billion of Risky Loans for Citigroup

And the hits just keep on coming.

International Herald Tribune
U.S. to inject $20 billion into Citigroup

The Associated Press
Sunday, November 23, 2008

WASHINGTON: The U.S. government unveiled a plan Sunday to rescue Citigroup, including taking a $20 billion stake in the firm, whose stock has been hammered on worries about its financial health.

In addition, the government will guarantee as much as $306 billion of risky loans and securities backed by commercial and residential mortgages.

The announcement was made by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp.