Citigroup Announces Repayment Plan To U.S Government

On Monday Citigroup the last big bank reached a deal with U.S. regulators to exit the government’s bailout program, thus terminating their “loss-sharing agreement.” The loss-sharing agreement accounts for approximately $250 billion of troubled real estate and credit card assets. The termination for this agreement will now hold Citigroup responsible for loss or gains.

Brief Rundown;

Citi is to repay $20 billion in TARP Trust Preferred Securities with money from private investors.

Citi will raise $17 billion by selling stock.

Citi will issue $7.2 billion in other capital by the first quarter of 2010.

The U.S. government owns 34% of Citigroup and will begin selling its stake starting with its first sale of $5 billion worth of shares in the coming weeks.

With Citigroup’s announcement today, it seems that the financial markets are recovering faster than anticipated.

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Tags: Banks, Citi

This entry was posted on December 14, 2009 at December 14, 2009 and is filed under Banks. You can follow any responses to this entry through the RSS 2.0 feed.