us-government-bails-out-citi

US government bails out Citi

US treasury secretary Hank Paulson tries a new approach in an effort to rescue Citi from collapse and kick-start a recovery.
November 24, 2008
Vikram Pandit and Citi's other top executives closed the biggest deal of their careers on Sunday night, finalising an agreement with the US government that guarantees up to $306 billion in assets, adds $40 billion of capital and keeps them in charge of the troubled bank.

Citi's senior bankers thrashed out the details of the rescue during weekend-long crisis talks with officials from the US Treasury, Federal Reserve and the Federal Deposit Insurance Corporation after the bank's share price collapsed by 60% last week. Under the terms of the deal, the Treasury will inject $20 billion of fresh capital under the Troubled Asset Relief Program Tarp and the Treasury and FDIC will provide a guarantee...
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